Cafe De Nattes
Famous cafe where artist Paul Klee worked often. Located at the top of the hill from the TGM train. Much cheaper than cafe delices and more traditional as well. Shisha for 3 dinar, mint tea for under a dinar.
Cafe Delices
Best view in Sidi Bou Said. Shisha for 4 dinar, but be careful, if you don't know the price the waiters will attempt to scheme you for more money. Drinks are very expensive here 5 dinar per bottle of water!, essentially you are paying for the view.