I love popping into Magic Pony whenever I'm down on Queen West. There is always something new and cool for me to add to my collection. They carry designer vinyl toys, UglyDolls, KidRobot items and cool artwork prints. They also have interesting jewelry and artsy items for your home.
They are one of the few places in Toronto that I can get authentic Gloomy Bear related merchandise, and for that I will always love them.
They also have a points card that you can sign up for so that you can accumulate one point for every $20 you spend in the store, and later redeem each point for $1 off your purchase. I don't remember what the initial purchase has to be in order to qualify for the points - offhand it's around $85-$100.