Here is what we would recommend:
If they like princesses, definitely do breakfast at akershus in Epcot. The food is very good and everyone will like it. The service is good and the princess interaction is great. When we were there we saw Belle, Mulan, Sleeping Beauty, Mary Poppins and someone else I can't remember. No Cinderella though. It is only one credit to go. I'd go do every character breakfast at about 1/2 hr to 45 min before the last booking for breakfast. If you do, the place starts to empty out and it is almost like you have the characters for yourself, plus they do not stop bringing out fresh food.
We also liked for breakfast (in no particular order):
1. the playhouse disney play-n-dine at Hollywood and vine (MGM). This is good if the kids like Jo Jo, the Einsteins, etc. There was a loaded buffet with anything you could want. I bet the characters came over at least 5 times and stayed A LONG TIME. My daughter loved it.
2. Breakfast at The Crystal Palace in MK. Everyone loves Pooh and friends. Again exceptional food... they'll make you omlettes and everything here... and great character interaction. Pooh, Piglet, Tigger, etc. Wonderful. We did this one even before we had our daughter.
Again, we like a breakfast around 10:15-10:30 or so. You will be able to go to the park early and ride the popular things then go eat as the kids start to get tired. Or, you can sleep in a bit. We tried to book the breakfasts the day the park opened early. It worked out great.
For dinner try Chef Mickey's. Here you can see all the "big guns" like Mickey, Minnie, Pluto, Goofy, etc. We booked for the 1st available seating (5:00 I think) and had great character interaction. The only problem there is that everyone rushed the food line and was acting like they never ate. Maybe booking a little later would resolve this. We liked the food here and have no idea why people complain.
If you have kids, the character meals are the way to go.
Here is my dining review from this summer if it helps. I have pics of the food items from these restaurants included.
http://www.disboards.com/showthread.php?t=1531687
Have fun!