Funny you should ask that - I have a patchwork magazine open on my desk with an ad for a Torbay patchwork shop right there. I came across it and emailed my mum as she is going there in a few weeks.
Anyway, the shop is Sewing the Seeds and it is in Torquay Railway Station Solsbro Road. Go out of Torquay heading in the direction of Paignton on the coast road and I assume the station is sign posted.
Or I know of a nice shop in Exeter if you can venture further afield. Can't remember the name but it is also at Exeter central station, funnily enough.
Or for the woolly experience, Bovey Tracey has a lovely wool shop - Spin a Yarn plus the Devon Guild of Craftspeople Crafts centre with lots of displays. That can't be too far, just head out of Torquay, go through Newton Abbott and Bovey Tracey is a few miles north of that on the edge of the moors. (Apologies if you know all this).
Cockington used to have a fabric seller in the big house somewhere. Don't know if they still do. Nice place to visit though, if only to watch the glass blowers.
Enjoy your break. I am very 
especially as the sun has come out today!