Seriously (or maybe not), people have given a lot of thought to this question. I remember reading the answer to this question in the Burlington Free Press as a kid, and I was delighted to find the same answer in a blog post online:
For foreigners, a "yankee" is an American. For American southerners, a "yankee" is a northerner. For northerners, a "yankee" is somebody from New England. For New Englanders, a "yankee" is somebody from Vermont. For Vermonters, a "yankee" is somebody who eats apple pie for breakfast.
I was pleased that The Old Tavern offered apple pie for breakfast at the Grafton Dairy Conference. Served with cheddar cheese from the Grafton Village Cheese Company, of course. A wonderful way to start the day!