Wife and I had a chance to spend 2 days in Cape May without the kids :-) and had a great (though very hot) time. First night we ate at Daniel's on Broadway in West Cape May. This is the highest Zagat rated restaurant in NJ at 28. The dinner was excellent and the service very professional. We had veal strip steak and macademia-encrusted lamb loin in a coconut-curry sauce. It is also BYOB. The food was very good but, if anything, a bit clunky with too many things going on at once (Shola's layers of delicate flavors have spoiled us for good!). We also thought a 28 rating was a bit too high. All in all, a very good meal and experience.
Second night we ate at Frescos with my brother and his wife, a BYOB Italian restaurant next store to (and owned by) 410 Bank St. Another very good meal of red snapper with lobster, rack of lamb, and stuffed veal chop. All was very good and, if anything, more delicate in flavors than Daniel's. A Zagat rating of 24 might be a bit too low.
I am amazed at all the great BYOB places to eat at in Cape May. We wanted to try Louisa's (a tiny funky BYOB place) but couldn't get a reservation, next time! We also checked out Martini Beach (above Cabana's), the place where our dear own Katie works, but it was closed.