I burned a cake at fantine's and she demanded I replace the Field Oven Mitts I burned in the process. I did so, and she accepted it and I can bake again. However her message said:

Probably something minor and it didn't affect the "quest."

I spoke with a programmer and they said that since the item went through, it was likely that the page hiccuped and loaded twice and that is why the "no such item" came up.

Yeah, that makes sense.