This is my absolute favorite bakery in Iceland. They have a variety of vegan and non-vegan baked goods that are a treat for your taste buds. I highly recommend trying the snúður (cinnamon roll). The caramel one, in my opinion, is the best flavor but you honestly can't go wrong with any of them because they are that good. Oh, and their kleinur (Icelandic donuts) are delectable. They are great for having in the car as a snack while exploring the country. They often have new pastries, so I suggest trying a variety of what they offer.

P.s. - I will sometimes make the 40-minute drive from Reykajavík to go there and get some delicious treats.