We were only in Anchorage for three days, but I visited this bakery all three days. It's tucked away at the back of a lovely gift shop on the corner of Fifth Avenue and E Street on one of the Town Square's corners. You have to go through the gift shop to get to the bakery.
They bake everything fresh in-house and not only does the stuff taste great, the prices are wonderful. My favorite is the crueler donut with a lovely subtle glaze -- only $1. My mouth waters right now thinking about it! I ate three in a row one day.
They also have good cookies and cake. I tried the Boston Crème cake and it was so moist and yummy. I didn't try the sandwiches, but if the pastry is any indication, it must be good. I would highly recommend a visit to the Kobuk bakery. I went to one other bakery in downtown Anchorage (before I discovered Kobuk) and it was not half as good, but was lots more expensive. Don't bother going elsewhere -- go to Kobuk and eat a donut for me (:
p.s. They have really unique cute gifts inside the front part of the gift store too.
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