Hidden away off the main drag, Chestnut Hill has a nice little bakery, CAKE. It's located in a little cluster of shops on Evergreen Avenue (the other side of the parking lot behind First Union Bank - 8500 Germantown).
There are tables for on the spot consumption, light lunches. The owner/baker is on the premises. There's a nice variety of cakes and pies. I wont tell the name of my favorite coffee cake as they are often gone by late afternoon already!