Forget any preconceptions about traditional Portuguese and Spanish dishes. When Sydney hospitality couple Ross and Sunny Lusted open their 90-seat Russell Street restaurant Marmelo and basement bar Mr Mills, the Iberian coast is a jumping-off point.

Ross Lusted, the star chef behind Sydney steakhouse Woodcut and now-closed three-hatted fine diner The Bridge Room, will give the famous pasteis de nata (Portuguese tarts) a savoury spin.

Like the original, the pastry will be flaky, but the filling will channel steamed-egg custard dishes such as Japanese chawan-mushi. Hand-picked blue swimmer crab will add the final flourish.

“I can’t cook without charcoal and wood fire,” says Ross. They’ll power a custom-built grill and oven, respectively, which will impart a smoky char on much of the menu, including southern calamari with green coriander seeds and goat’s-milk butter, and a dish of crisp Carolino rice, renowned in Portugal, with a crown of local seafood.

Marmelo means quince in Portuguese and that will star as a dessert with wood-fired cinnamon.

Portuguese influence has trickled into the drinks list, too. There’ll be a strong representation of vinho verde (young, slightly fizzy “green” wine) and wines from the Douro Valley, plus amarguinha, a bitter almond liqueur that the Lusteds discovered is a popular aperitif in Portugal. Almost marzipan-y, it will be served on ice with a splash of lemon squeezed tableside.

Beneath soon-to-open luxury boutique hotel Melbourne Place, Marmelo is a “very beautiful glass box”, says Ross. Flooded with natural light, the soaring Mitchell & Eades-designed space will feature hand-painted tiles that evoke the streets of Lisbon, and a newly commissioned still life of the namesake quince by Melbourne artist Lucy Roleff.

A central, chartreuse-coloured staircase will lead you down to companion bar Mr Mills, which will have its own laneway entrance.

Much more loungey than Marmelo, it will have booths to sink into post-dinner, an interesting selection of madeira and Portuguese brandy, and a snack menu that takes it into late-night supper-club territory. Expect slow-poached tuna gildas, and bikini, squished Spanish toasted sandwiches filled with jamon and manchego, with quince paste on the side.

Marmelo and Mr Mills are slated to open in spring.

130 Russell Street, Melbourne, instagram.com/marmelorestaurant, instagram.com/mrmillsbar