I stayed at Inn at Perry Cabin and had a wonderful dinner there but there are several fine dining places in SM. Bistro St. Michaels serves French cuisine. 208 Talbot would be my choice for fine dining if you did not go to the dining room at Perry Cabin. Foxy's, The Crab Claw and Town Dock are all casual seafood restaurant overlooking the water front.
Inn at Perry Cabin @ 308 Watkins Ln., St Michaels, MD 410 - 745 - 2200.
Bistro St. Michaels @ 403 South Talbot St., St Michaels, MD 410 - 745 - 9111. FD/D.
208 Talbot @ 208 North Talbot St., St Michaels, MD 410 - 745 - 3838. * FD/D.
Foxy's Marina Bar @ 125 Mulberry Street, St Michaels, MD 410 - 745 - 4340.
The Crab Claw Restaurant @ 304 Mill St., St Michaels, MD 410 - 745 - 2900.
Town Dock Restaurant @ 125 Mulberry Street, St. Michaels, MD 410 - 745 - 5577.