There's a good variety of places to eat out in Bamburgh, all dog friendly and 10-15 minutes walk from Waterford, click on the names to link to the various web pages. The excellent Potted Lobster which specialises in locally caught seafood, but you'll probably need to book ahead of your holiday to make sure you get in. The Lord Crewe Arms is also very good, as is the Victoria Hotel, and the Castle Inn has a nice large outside eating area. The Copper Kettle Tea Rooms has a large selection of homemade cakes and scones and a nice outside space.
Further afield we'd recommend in Seahouses the Bamburgh Castle Inn, in Beadnell the Craster Arms and Beadnell Towers. In Craster the Jolly Fisherman, the Joiners Arms in Low Newton and the Ship Inn at Low Newton by the Sea.
There's a reasonable selection of shops in the village. Carters is an excellent butcher. The Pantry is a nice little deli and there’s a selection of craft beers, jams, confectionary, ice cream, panini and fresh bread at Wyndenwell .
Tesco & Sainsbury both deliver to Bamburgh.
There’s a bigger range of shopping close by in Seahouses including a well stocked Co-Op. There is good shopping in Alnwick, with a variety of independent shops as well as big supermarkets, if you like books you shouldn’t miss calling into Barter Books in the old station, an enormous collection of second hand books, a unique atmosphere and an excellent cafe.