Pondicherry is full of dainty cafes , bakeries and some heritage restaurants offering a fusion of French-Tamil cuisine. Cafe des Arts is a beautiful place to sit all day and sip coffee but they serve average food. Coromandel Cafe & Hotel Le Dupleix both serve some amazing dishes and have a beautiful ambience. Also, Tanto in Auroville should definitely be on your list ;it's not a place to be missed. If party is what you are looking for, head to The Storytellers Bar in Promenade Hotel.
Le dupliex is located close to the beach. It is a reconstructed villa and has 8 rooms only all designed differently. The restaurant serves some of the best Italian I've ever had..
Le Dupleix with its sweeping white arches and elegant woodwork, is the refurbished home of Joseph Francoise Dupleix the celebrated Governor General of French India. Each room is unique and there's a romantic patio in front too.