Excellent local bread in State College
Perhaps this is not news to the few other Happy Valley residents on this board, but I just recently bought the most delicious bread (it was a German-style rye, straight out of the oven) at Gemelli. I usually get my bread at Wegmans, but since I'm all for supporting small businesses, this may be it from now on. Give it a try. The staff is super-friendly -- they actually gave me the loaf for free just to try --, and it would be a shame if they had to close because they can't stand up to the umpteen supermarkets around.
They will also make any bread you ask them for, which is pretty awesome.