Blue bread is baked at Stray Temples (usually a farm outside of town) and given out to strays. They don't need more than a crumb to be good for the day. The bread doesn't have to be blue, it just has to be made from sacred wheat. Cat spirits don't need to eat, but if they don't or feel too neglected they turn into other things that range from sad to nasty. (This is probably the origin of some of the creatures you find in the Way and originating from the way, such as tangles, the lost and baby's breath. It bears mention that eating bread isn't good for living cats, but spirit cats eat what they want.
Blue Bread tends to be gritty and not that pleasant to eat because it's usually hand ground and cats aren't big chewers anyway. Alf and Jacky eat it because its convenient. Alf's reasons are somewhat religious (he is hardly devote). Jacky fell into the habit because she didn't have an appetite for a while and already ate like a bird. Now she's always got a small loaf in her bag. She never has to come home from adventuring, what's to lose?
It's popular to impress stories upon the bread. Pictures are sometimes carved into ovens. Sometimes to be baked onto the bread, sometimes for more belief based reasons. The image doesn't have to be clear, it just has to be present to get the desired effect. Real bread ovens have an insulating layer of glass that I think is neat. I don't think that glass melts into a usable disc (wish it did, how cool would that be?) but I'm determined to find a way to make that happen in cat ovens. The disc would be kept after the oven is retired and kept as a memento. Old temples might use their old discs as window glass.


















