There were two bakeries in the Blue Mountains that I came across in my research - Hominy in Katoomba for sourdough and Bakehouse On Wentworth because it was meant to be good and happened to be conveniently located close to the accommodation in Blackheath.
The Bakehouse was the first food stop of the trip after arriving and it didn't disappoint. The pies have a nice thick crust with rolled up sides that were a pleasure to chew through last. The kangaroo filling was slightly gamey and quite nice. Next time I'd probably try something more standard like the beef and guinness. The mini sausage roll was a nice filler to complement the pie.
Other than the pies, they advertise an excellent sourdough that I wasn't able to try.