Karl's has delicious bakery items. I love to look at the seasonal cookies (they are not as sweet as they look - more like shortbread "sweet.") and the eclairs and almond horns are great! But, you'd expect that from a bakery.
Here's my hot tip: you can buy whole, half or 1/4 quiche there. And they are awesome and reasonably priced. The crust is irresistible! (Literally. I always tell myself I'm not going to eat the crust -- under other circumstances I can take it or leave it -- but I just can't say no to this crust!)