The Vanillia Bean is the absolute best bakery in the Capital District. They have 3 locations, Troy, Latham and East Greenbush. They are famous for their sugar cookies with the big dollop of fudge on top (they do have a name). Their cakes are legendary, coming with either a pudding filling or a fruit filling, but a bit pricey. They can make any type of kid's birthday cake you like. These people are talented! Their chocolate covered strawberries are another favorite.
The Latham location has a cafe and has really good food at unbelievably cheap prices.