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The drive from Montevideo is about 3-4 hours...the bus may take a little bit longer. After you pass the international hotspot of Punta Del Este, you are about half way home and the highway narrows to one lane with beautiful countryside all around you-beautiful countryside unimpeded with any signs about where your destination might be. La Paloma is the largest beach city near Cabo Polonio so just follow the signs to La Paloma. Once outside of La Paloma, you have about a 1 hour drive.
If you drive for longer than one hour, you have jose ignacio uruguay passed Cabo Polonio or you drive way to slow! Coming up from the La Paloma area, it will be on your right and there is a sign, but it's very small. Don't be afraid to ask people where it is-"¿Dónde está Cabo Polonio?" if you feel that you have gone to far.