Aspects of cavity QED related to the quantum measurement process and the interface between quantum and classical physics are studied. The studies include the generation and detection of macroscopically separated quantum states (Schroedinger cats), cotangent states of the electromagnetic field and on new mechanisms combining cavity QED effects with the mechanical manipulation of atomic trajectories by light. Two of the most exciting subfields of quantum optics, cavity QED and atom optics will merge and should enable new ground to be broken in the study of fundamental questions in light- matter interactions.