An important development in modern physics is the emerging capability for investigations of dynamical processes for open quantum systems in a regime of strong coupling for which individual quanta play a decisive role. Of particular significance in this context is research in cavity quantum electrodynamics which explores quantum dynamical processes for individual atoms strongly coupled to the electromagnetic field of a resonator. An overview of the research activities in the Quantum Optics Group at Caltech is presented with an emphasis on strong coupling in cavity QED which enables exploration of a new regime of nonlinear optics with single atoms and photons.