Hi--just booked a B&B weekend for my hubby and I in Cape May. Though we live in NJ, we haven't been to Cape May in about 20 years!
We're staying at the King's Cottage B&B on Perry Street...anyone ever been there?

Looking for suggestions for some restaurants in the area--casual, not too expensive. Preferably not the Lobster House--been there done that. Not impressed...

Ahhhh Cape May. Cape May keeps getting better and better. We go at least 4 times a year, 2 weeks in the summer and scattered weekends. The King's Cottage is second from the beach on Perry, great location. We've never stayed there but have seen it many times. They have a porch with ocean views.
I can see that you're already getting breakfast, but if you weren't I would recommend George's on Beach. Its not fancy but they have a fantastic breakfast. Avoid Captain Bill's. For lunch Stumpo's in the mall, awesome pizza and other offers.
For dinner, Cucina Rosa in the mall. Its a byob and the wine store is just down the mall. You may also try the Black Duck on Sunset, really good. Wow now I'm hungry. Any more questions repost.

I forgot, the best part of this trip is that you can park your car and walk everywhere. If you choose you don't have to drive anywhere your entire stay.

I'm another Cape May fan. Not familiar with your B&B though. For a very casual lunch, we liked Henry's on the Beach, especially if the weather if nice.
For dinner - we liked Tishas (also right on the beach), The Merilon Inn (very good seafood, reasonably priced) on Decatur I believe. Also, I agree with northeast about the Black Duck, it's great! And there's Frescos on Bank St (pretty good). I've heard Carroll Villa on Jackson is also good.
Most of these restaurants are pretty casual, some are BYOB so that saves you some money too. BTW, we're going again this summer and are eating at 410 Bank St which gets good reviews, too.
For entertainment - we always liked taking the trolley or carriage tours, and renting bicyles and riding all over town.

If Louisa's Cafe on Jackson is still there (these places come and go), wonderful food, a hole in the wall, but excellent and casual. Mad Batter at Carroll Villa, also on Jackson, has supplied many a great meal over the years -- I prefer their lunches over dinners though (a better value). 410 Banks is marvelous, but expensive and more formal. Merion Inn is comfortable, clubby, lots of wood, with live piano music -- a Cape May institution -- and if you get there early, they used to have a prix fix menu that was a super value.

Since retaurants change, your B&B hosts should be able to guide you as well.

And if you haven't been to Cape May in 20 years, you'll find that it has changed remarkably little; the charm is intact even if parking is now impossible.

B/