We hired a private driver (Pero Klaic) who was recommended by Rick Steves. He did a wonderful job describing the past and recent history of Croatia as he drove us around the area surrounding the old town of Dubrovnik and showed us the sights. He took us to a small restaurant in Cavtat (a short distance from Dubrovnik) for a hearty lunch in a beautiful setting. We had several hours on our own to walk through Dubrovnik and "take in" The Pearl of the Adriatic. Absolutely enchanting!
We took the boat tour around Capri and stopped for a little side trip into the Blue Grotto. We enjoyed both very much. Yes, the Blue Grotto is touristy, but still a lot of fun and quite beautiful.