There is nothing like a Texas sunset. One of my favorite places to catch the sunset is at the Hula Hut on Lake Austin Blvd, a spot that has a deck that overlooks the lake and the dam.
The restaurant provides the perfect vista for the sunset while having a margarita. The TexMex at the Hula Hut is famous—you won't be disappointed by the Texas-sized portions and all you can eat chips and salsa (I would say that the salsa here is my favorite in Austin, and that's saying a lot).
You can get to the Hula Hut by car or park your boat right out in front if you've spent the day wake boarding on Lake Austin.
Expect a wait for a table as this is one of the most popular restaurants in Austin, but you can also stake out a spot at one of three bars located in the restaurant.