I also like:

• The Green Iguana: King St Newtown
• Pamalat: Victoria St, Kings Cross (near Bar Colluzi)
• Bar Milazzo: 379 - 383 Pitt Street (near Liverpool St)
  They use Lavazza coffee. Tiny place but excellent coffee.
• Jones the Grocer: in Moncur St, Paddington, near Queen St.
  A grocer/kitchen supply/cafe place. Highly recommended.