Thank you for the great Port Ludlow recommendations!
The Ajax Cafe was wonderful! For those who haven't eaten there - it's a casual cafe and when we went there on Saturday it was like joining a festive party. The walls and ceilings are strewn with hats and most of the people in the restaurant took turns wearing and exchanging them(my husband ended up in a french beret while the table next to us, at one point, had a drum majorette and a viking complete with horns among their group!). However, what made us go back the next day was the food! I had halibut in a macadamia nut crust with a lemon herb sauce. The halibut was excellent, the crust was crunchy and the lemon herb sauce was great. It was silky but kept just enough of the tart lemon taste. My husband had their seafood stew which he thought was fantastic. A chocolate pot du creme (spelling?) ended the meal! I wish they'd open up a restaurant in Seattle!
We also went to the Chimacum Cafe for breakfast. Like Tom said, good basic breakfast. When I asked about pies, the waitress sat down at our table, wrote out a list and laughed with us while we decided what type we wanted!
Again, thank you Tom - we had a great time and your recommendations really were helpful!