Carolina's place is in a great location in the old Moorish area of Alfama with it's narrow twisty passages. The castle is just up the hill. Pack a lunch and enjoy stunning views over the city and the bay. It was a bit load, but people watching from the balcony was hard to beat.
We rode the 28 tram with our kids over to the park/playground Jardim da Estrela, then had a lovely Persian dinner at Cafeh Teran, enjoyed a street performance of jazz guitar in the Pray do Carmo and had gelato in Chiado, then rode the tram again back up the hill. What a great day in Lisbon.