Visited the newly opened Billy's Bakery yesterday afternoon and it is definitely in the Magnolia/Mary's Off Jane/Buttercup mold. It has the now seemingly requisite quaint "retro" decor and serves homestyle american baked desserts classics like pound cake, layer cakes with buttercream icing, lemon bars, and cupcakes. I tried a vanilla cupcake with pink buttercream icing ($1.50) which was scrumptious. While this cupcake is clearly in the style of Magnolia, it is a hundred times better in that the cake is light and very moist and has good buttery and vanilla flavor. The frosting was fresh, very buttery, yet light. It was quite sweet but not as grossly tooth-achingly sweet as the magnolia version. Clearly "homemade" with no artificial mix flavors. Very different from the dry cake and crusty on top-greasy in the interior frosting of the magnolia cupcake.
Didn't get a chance to try any of the other desserts, but this place does look promising.
184 9th Ave. btw. 21st and 22nd.