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As a previous owner of a restaurant, I have some ideas where you should start.
First, determine what will be special about your business - what makes it unique and why will customers buy from you versus buying from other bakeries, grocery stores, coffee shops that offer pastries, etc...
Second, meet with your local health department to get their requirements. They will most likely require that you operate out of a commercial kitchen and not your house. You may have an opportunity to keep your cost down by subletting space from a current restaurant or hotel with a kitchen.
Third, develop a business plan. Before you get started, you should have determined your legal structure, purchased all necessary licenses, researched your local market (customers and competitors), defined your marketing strategies, assessed necessary funding, and so forth.
If you need help with a business plan, I have a page on my site to help. Here's the link:
Doing research and developing your business plan will guide you in performing the necessary steps to proving the profitability of your idea and launching your business.
I hope this helps get you started.
Sologuide has GREAT advice on getting going. Once you have your basic business details in place, you should get yourself listed on Facebook and Google Maps for free. It's easy and will cause you to show up for free, without the need to spend ad dollars. Once your business is making enough to justify advertising, then you can spend $10 a week to see how your ads perform. If you need help creating your free profile at the search engines, feel free to ask me. I'm at Dennis@blitzlocal.com.
Thanks for the compliments.
Another marketing strategy that worked well for me when I owned my restaurant was to take samples around to key potential customer locations along with flyers about your business or special offers / coupons.
Best of luck.
Starting a business about something you are passionate about is great and there has been some good advice here. If you can outline more specific questions - you probably will get more specific answers - answers that are better for your particular business, location and situation.
Have you decided on who you would like to sell your products to? i.e. People locally, businesses, online. I know that some of the big names in NYC and LA will actually ship cupcakes to customers. The company I represent http://www.gosmallbiz.com is an excellent resource for new as well as established businesses. Their main feature is the ability to speak to consultants in any field via email within 24hrs. Check out the site and if it something you would like to learn more about, please contact me privately.