Just returned from a week staying at the Kanakis Studios in Assos. We hired a car for the week and saw the entire island and Assos was my favourite place by a long way. Coach loads of day trippers tend to head for Assos during the day, but once the sun goes down, the atmosphere is absolutely amazing. Best restuarant in Assos is Platanos - great food washed down with the fantstic local Robola wine and very friendly staff.
Also ask for Dimitiry at the Sea Side Bar for boat hire. It cost us 80 Euros for the day but was well worth it. We went right up the coast to to Fiscardo in the North and then over to a remote bech on the neighbouring island Ithaca for a picnic. Fantastic!

We visited the lake at midday (as recommended by the guide books as the water is at its deepest blue with the midday sun above). Unfortunately it felt the whole of Cephalonia had read the same guide book and had also decided to visit at midday. As a result, it felt like we were on a conveyor belt and was far from relaxing! Shame really, as the cave itself is stunning.

The views of the beach from the viewing point on road above (particularly when approaching from the North (from Assos) are breathtaking. The beach itself is very nice, but if you intend to spend the day there, I would recommend taking someting to eat with you - the wooden snack bar has a far from inspiring menu!

Just returned from a week in Cephalonia. We ussually avoid the big tourist areas and we sayed in the village of Assos, but we hired a car for the week and spent the afternoon in Skala. I was really impressed with the place. The beach was lovely and the pine trees that line the sand give the place a very unusual (but very pleasent feel).