My review is very late, I stayed at Paula's warm and cosy guesthouse in February this year and October 2012 and she is as amazing (if not more!) than the reviews suggest!
I visited during my 25th birthday week and she went above and beyond her obligations as a host and was more like a friend. On one particularly quiet night Paula, 2 fellow guests and my boyfriend and I shared an incredibly tasty bacalhau in cream dish and wine which was fun and on my last night we shared funky/funny chicken pizza just because we wanted to stay in after a tiring day and it was too late to hunt down restaurants.
The breakfasts are divine and the rooms are so well designed and looked after you can rest easy that the little things are taken care of and can just relax and enjoy yourself. She loves her city and will tell you all sorts of interesting facts if you let her though if you a more private guest she respects that also.
Am I coming back? Definitely! I never stay in the same place twice but Pensao Royal is an exception. See you in October :)
Ooh and say hello to CÉSAR for me (hopefully I spelled that right!)