Hidden in the lush valley of Serra de Água, Taberna da Serra is one of the oldest and most iconic spots to try traditional poncha. Known for its strong mix and rustic charm, this bar is as authentic as it gets – no frills, just bold flavour and local atmosphere.

The floor is famously scattered with peanut shells (yes, you're meant to throw them there), and the walls are covered in banknotes and business cards from visitors around the world. A must-visit for those seeking a taste of real Madeira in a place full of character and history.