Kensington is a fun, Bohemian-style neighborhood in downtown Toronto. It reminds me of some parts of midtown Manhattan where the hipsters gather and big box stores are kept at bay. There are people walking their dogs everywhere, street musicians, and tons of boutique shops and restaurants to choose from.
There are a lot of vintage clothing stores where you can get a good deal, and all sorts of cool knick knack shops to sift through. Pancho's Bakery sells freshly fried churros, like half a dozen churros for $5, with your choice of fruit or chocolate filling. Grab some and just wander around. It's a great place to spend a lazy Sunday afternoon getting brunch (I recommend Le Kensington Bistro on Augusta Ave) and then popping in and out of funky home decor and bookstores.More