Saegreifinn, the Sea Baron, is a delightfully unpretentious harbourside shack that has been serving what many call the finest lobster soup in Iceland for years. Grab a seat on a barrel-top stool, order a bowl of the rich, creamy soup and a skewer of grilled fish picked from the chiller, and tuck in among the fishing nets and old photographs. It sits right on the old harbour among the whale-watching boats. Come hungry at lunchtime, do not be put off by the short queue, which moves quickly, and finish with the langoustine skewer.