I made a special trip on my second day in Munich to visit Princess Schokobar and it was worth the effort. They had incredible looking fancy cakes, chocolates and baked goods, but my dining partner and I each chose a simpler, more traditionally "German" style Kuchen/cake. We had an apple cake and a hazelnut cake. Both were amazing. The apple cake was moist and delicious and the hazelnut cake really tasted of hazelnuts. All their goods are fair trade & organic (so kudos for that!).
We ordered a double espresso and a latte machiato which were reasonably good. (I wouldn't travel there for the coffee alone, but they were above average.) Next time I will try their chocolate Sachertort and perhaps a hot chocolate (which you can have plain or flavoured with chili, cinnamon or ginger).
All in all I found it worth the trip. Our cake and coffee came to !2.65 EUROS, which seems reasonable for Munich and great considering it's fair trade, organic, vegan and delicious.
I did have a hard time figuring out their hours from their minimal web presence, but was fortunate they were open when we arrived. Also, not having a public washroom was a small drawback, though this isn't uncommon for small food shops in Germany.
Updated from previous review on Sunday December 15, 2013
Cons: unpredictable hours, no public washroom