Will be driving from NYS to Cape Cod soon but will also stop at Williamstown - Rockport, Glocester, etc. Will be leaving home early and would like a recommendation on a nice breakfast place in Williamstown -- then accommodation/eating recommendations in Rockport area...

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I'm confused about your itinerary. If you're driving from New York to Cape Cod, Rockport and Gloucester are not on the way. How long is your trip?
The Yankee Clipper Inn in Rockport is an attractive inn (probably expensive) with a beautiful setting. I can't personally recommend it, but the spot is really nice.
If you can give some more info about duration, that would help. If it's just a short jaunt in the area and then down to the cape, that'll make a difference in what we recommend that you shouldn't miss.

She's driving from New York State, not City, Eileen. Notice she's going through Willimastown--Berkshires.

My favorite place to eat in Williamstown is 5 Corners on the south side of town, east side of rte 7 as you are leaving town. It's a gourmet-deli place with restaurant on one side, small store with all sorts of irresistible goodies in the middle and around the perimeter, take-out counters with so many fascinating selections you'll leave with 3 times as much as you could eat, simply because you can't choose. Not inexpensive, but worth it!

There is a bakery on Spring Street in Williamstown (basically the main street, right off the main highway) called Cold Springs Coffe. It is a very cute little coffee place that has pastries, scones, etc. There is also another bakery up the street, but it does not have tables and chairs. There is also Papa Charlie's on Spring Street that has good bagels and cream cheese (nice booths to sit in too). The other place, of course, is Friendly's, off the main drag (about a mile or two up from the main campus), which is always good!

I haven't stayed there recently, but the Vista Motel in Gloucester still seems to be very popular. Schooners is a nice, casual place to eat. Or drive to Essex and try the fried clams at Woodman's.

I'm still confused about the itinerary in the original post. Rockport and Gloucester are on the North Shore, on Cape Ann, nowhere near Cape Cod.