When I lived in Newport this was one of my favorite haunts. It is reliable (open almost all year, every day, all day), delicious and cheap. You will often find yourself inside with Newport's finest colorful characters but it's worth it.
My favorite thing to get was the 2 eggs + ______. The fill in for your breakfast meats. I always got goetta because I'm a good Cincinnati girl. They make it the way I like it, almost burned. I also am a HUGE fan of their chili. It tastes similar to Steak N Shake chili but smokier and spicier. Have a look at pics of the menu on their Urbanspoon page. When you go be sure to look at their whiteboard for their daily specials. It will have everything from ice cream sundaes to fried pickles. Delicious!