Pescadeo, California

One of the little side trips you will want to take is to the historic little town of Pescadero. The town of about 650 people is 16 miles south on Highway One and two miles east of Pescadero State Beach on Pescadero Road. (You'll see the sign on the left marking the town)
Many of the buildings in town date from the 19th Century.
Heading to town, you'll first pass the Pescadero March. Located where the Pescadero and Butano Creeks meet, the marsh has for decades been a thriving habitat for both migratory and native wildlife.

Little known fact that Gordon Moore (founder of INTEL) grew up in Pescadero and resided there until he was about 10 years of age. His childhood home still stands (Lunasea) as does the barn he played in (Pescadero Creekside Barn).
There are a number of stores/shops to visit....local artwork, antiques and bakeries etc.
Duarte's Tavern 
202 Stage Road,
Pescadero CA 94060
(650) 879-0464
Hours:
7:00 A.M. to 9:00 P.M. Daily
no pets in the restaurant/pricey

In 2003, Durates' was given an honorary James Beard Award for Excellence as an American Classic. They serve up to 13,000 people a month, so it's not unusual to arrive and see a line of people outside. We came late afternoon during the week and had no problems and were seated right away. Their claim to fame is their artichoke soup...we had ours half and half with their green chili soup...now that was something else. They are also known for their fresh made pies, although I must say I wasn't impressed.
Also while you're in the area, you must stop by Harley Farms Goat Dairy.
Harley Farms Goat Dairy205 North Street
Pescadero, CA 94060
(650) 879-0480
Open daily 10am-5pm
No pets are allowed

When you visit, you'll see the very real physical work of farming. You'll see the Victorian barn, with its century of San Mateo dairy history.
There are special dinners in their incredible barn and you can buy the fresh goat cheese. This is definitely something you will want to see....
Check out this wonderful video that will give you a true feeling of the farm: http://tinyurl.com/6rx5sfp