Totnes has lots of lovely cafes and is a great place to just go and potter around. I would recommend the Curators Cafe on the Plains for good coffee, Mange Tout Cafe half way up the high street for good lunches. Also Seeds Two cafe is great near the main Civic square – to be honest there are so many good cafes I suggest you just go and try some!
Cellar Door Cafe at Sharpham Estate is also very good (recommended by us and the Observer Food Monthly!) you can walk straight from the house along the River Dart for either coffee and cake, great lunches or wine and cheese tastings! Open from Easter to October half term.
Riverford Field Kitchen is located about 25 minutes drive from the Shippon, it does amazing organic food and fabulous meat. You need to book but its a lovely place and can cater for huge numbers on its long, long trestle tables.