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The Drake makes a great donut - favourite is the plain with chocolate icing. Found the cinnamon sugar gritty somehow.
Sanremo Bakery on Royal York south of Gardiner makes fanastic fritters.
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Don't know of any in the GTA but if you are heading up to cottage country and driving through Uxbridge there is an old fashioned bakery on the main street that makes amazing REAL chocolate covered doughnuts and jelly doughnuts. They are fabulous and bring back memories!
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