Iceland seems quite keen on bread and it's probably the basis of the cheapest possible meal in Iceland (albeit not that cheap in itself). Sandholt I had read was an award winning bakery even though I had difficulty finding what it had won awards for. Nonetheless after visiting the church Hallgrimskirkja, Sandholt is a short walk away.
It's a nice pleasant and rather expensive looking place attached to a hotel. The seating inside is cosy with the back wall lined with couch.
The options are fresh bread loaves, sweet pastries and some sandwiches/croissants.
Viennese Roll with seeds 150ISK was eaten simply as is. Crisp shell and soft bread. Delicious.
The sweet choices were a cherry chocolate pastry 450ISK-ish and their apple Danish 890ISK-ish. The danish was my favourite for the size and price and it was beautifully textured with a layer of apple filling.
Happily return and try the bread loaves to take away next time.