I think I've mentioned before that Clafouti in Varkala is a wonderful place for dinner, especially if you sit upstairs at sunset. Haven't found anyplace else in Varkala (or Kovalam) that matches it.
In Kovalam, nothing stands out as super, but you can eat well at the Malabar Cafe, and the Swiss Cafe is good if you're looking for European food.
def not looking for Euro food! Indian food in India!