New Englanders seem to have a sweet tooth -- you can't throw a stone without hitting a homemade ice cream shop or a donut shop. Often, the donut shop is a Dunkin Donuts--fine, but nothing great.
To get a taste of real old-fashioned donuts, try Hole-in-One instead.
Hole-in-One has two locations, one on Route 6 in Eastham, and one on Route 6A in Orleans. The Orleans shop contains a sit-down restaurant with table service, and it provides traditional breakfasts and sandwiches. Our waitress was cheerful and attentive, but a touch clueless -- she didn't know what a raised donut was, a surprise given that she works in a donut shop.
The egg and hash breakfast was average -- the eggs were exactly as ordered, and the hash was homemade (though I much prefer the hash at Red's in Salem), but the homefries were the frozen kind, coated with starch and spices to make them crispy -- ick.
I prefer the Eastham location. Don't be afraid of the line that snakes around the small building--it moves rapidly, and if you only want baked goods or donuts and coffee, you can order at the outdoor express ordering window.
If you want something more substantial than donuts, there's counter service and cooked breakfasts inside. Locals and tourists alike come for good cheap coffee (under $1 for a small) and hand-cut donuts; try the raised -- they're a revelation. Sorry I can't say more, description just fails when faced with these donuts. Plus, if you smile real nice at the friendly lady behind the counter, she might just sneak a donut hole or two into your donut bag.