You can definitely check out Coast Guard Beach (great shuttle service and a few years ago was rated one of the top 5 beaches in the Country) and Nauset Light Beach which are right in your backyard. Nauset Lighthouse is cool, also, definitely check out Cape Cod Light. It's massive, and you can take a tour of that which the kids will love. I believe Arnold's is right there (& your type of restaurant according to your criteria). and I used to like going to Eastham Lobster Pool (D/K if still is in business). There's also a great little breakfast place in Eastham that has homemade muffins and stuff (can't think of the name but you'll find it if you look hard enough).
Sounds like you're right on or close to one of the bay beaches, maybe just go there everyday and soak up the sun.
I believe in Eastham or Welfleet there's a drive-in movie theater, as well as, regular theater. In Welfleet or N. Truro check out the Whitman House for some very good food and very kid friendly place. Bay side beaches will be warmer and might be worth going to Corn Hill Beach (one of my favorites for kids).
Might as well take a trip into P-Town just for the show if not anything else. Whale Watching is always fun (might be tough with the 1 year old but doable I would say). Eat at the Lobster Pot while in P-Town just so that you say you did and I actually happen to like it there (also kid friendly, stop the cold bar right on the way in).
You can always hit the P-Town monument for some exercise. Worth fishing, you betcha. I would personally sling eels at night on the bay, as well as, Ocean Beaches and I'm not going to spot burn but you're in some prime real estate so just look for structure.
Mini-Golf, driving range, and a batting cage are right there as well in Eastham. Be sure to check out the Red Barn (kids can play video games and the wife will end up picking up something or other). Pizza's not too bad either, respectable I think.
Would definitely stop by Nelsons (say hi to LI Fish in VT) and Black-Beards for some local fishing reports. Chatham Light is also beautiful. If memory serves me correctly, Marconi Beach forms nice tidal pools for the kids. Also, another beach in P-Town is Herring Cove Beach (what makes this beach special is you just park and the beach is 20 yards away). I'm sure others can chime in with much, much, more knowledge of CC then I can. I do love it up there as do my daughters.
No matter what, always have a rig with you at all times when on any beach. You just never know.
Hope this helps somewhat.
Ice
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