As Beth mentioned the premier property in La Jolla overlooking the Cove is the La Valencia. Here's a couple of links about it. http://www.lavalencia.com/ http://www.karenbrown.com/california/lavalencia.html

And, yes, there is a restaurant just a few doors down Prospect St. from the La Valencia called George's at the Cove. George's has been winning awards with its outstanding menu and spectacular views for about 15 years now. Here's the link to the restaurant's website. http://www.georgesatthecove.com/

There are a plethora of restaurants along Prospect St. and the surrounding area in what the local La Jollans call the Village, the central part of old La Jolla. Another wonderful seaside restaurant in the area (about a mile from the La Valencia) is the Marine Room.

>How far apart are these two towns?

La Jolla and Laguna Niguel are 59.3 mi. apart a 1 hr. and 10 min. drive. According to the route planner in Expedia.com.

I would say a stay at either of these properties should be suitable.

If I can be of any other help let me know.

John Rule San Diego, CA