Hi Connie! It's nice to hear from a fellow North Carolina gal! Both the Cape May Cafe and Tusker House character breakfasts are inside, and I think your children would love both of them. Unless your daughter has a strong desire to see a particular character, I would choose the restaurant that is most convenient to the park you plan to visit that day.
Donald's Safari Breakfast at Tusker House is in the Animal Kingdom park and generally features Donald Duck, Daisy Ducky, Mickey Mouse and Goofy. The
Cape May Cafe breakfast at the Beach Club features Goofy and friends, and would be a great choice for a day you are visiting Epcot or Hollywood Studios. Generally, I've found that the Cape May Cafe breakfast is much less crowded than other character breakfasts, and as a result, you get more frequent interaction with the characters. Often when I've visited Cape May, the restaurant was so uncrowded that the characters stopped by our table multiple times! However, if you're relying on Disney transportation, you may prefer Tusker House, as traveling there from one of the value resorts will be easier than traveling to the Beach Club.
Hope you have a magical vacation with your little ones! Come visit us again at the Moms Panel if you have more questions!