* Backerei & Cafe - As mentioned earlier, this apparently is an excellent bakery with very authentic German-style breads. I believe the chef is German. This place was strongly recommended by a German friend, so it should be worth trying.
* Schwarzwald Deutsche Spezialitaten
#9, Lane 6, Yongkang Street, Taipei
(Lane 6 is on the part of Yongkang Street that is not too far south from Xinyi Rd. If you're driving southward down Yongkang from Xinyi, this lane is on your right, and Schwarzwald is about halfway in the lane, also on your right.)
I believe this is the German bakery that Sandman mentions earlier in this discussion.
This is a small restaurant with very authentic German food. The chef is a Taiwanese woman who is married to a German; they lived in Germany for a very long time, and she learned how to cook many of the traditional dishes. I've had two meals there, and I thought they were fantastic. Again, a German friend gave it his stamp of approval.
It is not primarily a bakery; nevertheless, it does have quite a wide variety of small breads and cakes. They have this white bread which is baked in a small, longish, triangular-shaped loaf with confectioner's sugar sprinkled on top--I KNOW, I know, sounds strange and a bit too close for comfort to those overly sweet Asian breads. But I swear, it's not, it is absolutely delicious and clearly the work of a Western-style baker! No baguettes, though.
* Twins Bakery - Sorry, I don't have the precise address for this one, but the branch that I know of (it has many branches, I believe) is on the north side of Ren'ai Rd., east of Dunhua and Anhe--although which block precisely, I couldn't tell you, sorry.
Most of the baked goods look like those in a typical Taiwanese bakery, but don't be scared away by that; in addition to all that, they do have baguettes which are really quite good. Now, don't expect them to be like the best baguettes you'll find in Paris, but the one we got, we enjoyed. However, depending on how finely you want to distinguish between different types of bread, I can't remember now if it might have been more like a nice, long "baguette" of Italian bread, as opposed to French bread (there is some difference in the texture and ingredients which I am not cultured enough to know). But it was still really good.