If you want to try real homemade keralan food then Banana Leaf is probably the best place to visit in Varkala. We've visited many restaurants but all of them offered us only some low spices version of dishes for tourists, not the original keralan food. Since we've discovered Banana Leaf we're having lunch there every day. It's not a typical restaurant, there's no menu, you just get some kind of thali with various vegetarian dishes, sometimes with fried fish or fish curry, all with very delicate coconut flavour. It's a very basic place but food is very fresh and simply delicious.
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