I was born and razed (sic) in Monterey, and even though I now live in Indianapolis as often as I go back I'm sure there isn't any joint on the Peninsula I haven't frequented.
If you want a restaurant with a breath-taking view you'll want to try either the Pacific's Edge (pretty $$$$$) or California Market at Carmel Highlands Inn. It's about 5 minutes to the south of Carmel on the PCH so it's a real short hop.
Another good place for grub is The Carmel Mission Ranch. Great Rack of Lamb, and the Swordfish is delish, too. An added benie is it's owned by Clint Eastwood and he is known to stop by just about every evening around sundown for a nightcap.
If you do run into him take my advice and don't tell him he doesn't look like such a tough guy anymore.
:biggrin: