Went to the Paddington markets last Saturday. Lots of clothing, soft furnishing, jewellery, handbag, art, craft and food stalls. Lots of hand-sewn and hand-printed items for sale. I liked the stall that sold Chinese stone stamps. He would carve out your name in Chinese for $10. You also buy the Chinese words for happiness, wealth, health, longevity etc. Sweet Little Treats was there. They were selling their cute softies, fabric buttons and bags. The markets are a great place to visit.
We then walked around Woollahra a bit just up the road from Paddington. Walked along Moncur St and a few other side streets. Lots of cafes, fine food delis, art galleries, clothing and furniture and design stores.
Had lunch at Caffe Quattro Passi at 8 Elizabeth St, Paddington. It was nice casual Italian food. Very good value too. We tried the pumpkin, roasted vegetable turkish bread and the arancini with salad. The hot chocolate was really nice and the chocolate milkshake came in the large metal cup they use to make it in. That's very rare these days. Usually cafes serve milkshakes in a small glass. All for $23. They had a outdoor covered courtyard area as well.
Visited the RG Madden design store, Jones the Grocer - bought some yummy white chocolate rocky road and pistachio and cranberry nougat to have later, and they also have a walk-in cheese room!, and a few other stores.
RG Madden: http://www.rgmadden.com.au
Jones the Grocer: http://www.jonesthegrocer.com
Simon Johnson: http://www.simonjohnson.com.au/