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Since the kids are babies, I would go with Cape May because you have a lot of dining options that are nice and it's easy to put a baby in a baby seat and off you go--keep in mind though that most restaurants there will not allow the stroller in so bring a cheap stroller to leave outside. Congress Hall is nice--think you would be happy there. If they are closer to 2--consider Ocean City NJ-stay at the Flanders (in one of the renovated suites)--has a pool and right on the boardwalk and you can take them for the rides..lots o fun--no alchohol in OC though and restaurant options nil..good ones anyway. Not a fan of Avalon because it attracts a lot of the college age folk and bars..but that is me. FYI-Cape May has a decent zoo for a little shore town and when you kids are older, they could even do one of the day camps there for a day or two to give you a break..Enjoy!
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