San Stefanos has a lovely picturesque harbour. Many of the fishing boats are traditional in design. Most days the fishermen take them out to supply the local tavernas with lobsters, crabs and fish. The harbour is reached by walking North along the main road for about kilometre and turning right. I am sure you will find a fisherman, if you go at the right time, who will sell you a nice fresh fish to take to good taverna to be cooked for your evening meal. Whatever way you decide to have it cooked you will find it much nicer than any frozen fish from a supermarket.
Arillas is well within walking distance and although much smaller than San Stefanos has a charcter all of it's own - like all Greek villages. There is a long pebbly beach and tavernas along the sea front as well as those along the road out of Arillas. You could make a days hike and see the old Italian watchtower that sits on the point in the photograph. Many visitors love Arillas because of it's association with Greek history, it is a very old village. Nausica rescued Ulysseys here with her handmadens although it must be stated that just about every coastal village on Corfu also claims the same. I hate to think what his boat insurance was like.