After saying that, it is in the old city south of the tracks:
In the summer Diamond City has bread sales in five neighboring city farmers markets.
From the main page, store hours:
It is just a half block after turning left at the second Elk River traffic light, if heading northwest on Hwy 10. The website has a map, or with the above address you can use Google or Bing maps, online, for route/travel detail. There is angle parking in front and in back a large town parking lot, so parking is easy and on summer Thursdays a part of the parking area is set aside as a farmers market so you can get fresh produce and fresh bread.
Good people, at the counter and in back in the bread prep room. So don't forget the tip jar when shopping there. Excellent and successful at the site for around a decade. Regular customers can get a punch card, where a number of purchases will fill a card side, for a free loaf. AND -
THE BAKERY'S HOMEPAGE LISTS REGULAR BREADS AND SPECIALS FOR EACH DAY OF THE WEEK THEY ARE OPEN.
LAST: Beyond my touting the place, awhile back and still online, Strib, the big circulation Minnesota daily, featured it and Garrett Jordahl, owner, proprietor, lead baker and lead singer. (Kidding about that singer part, he whistles while he works.)