Final answer:
In Season 1, Episode 5 of 'The Office' titled 'Basketball,' Pam's bread set breaks down. The bread set was given to her at her engagement party three years earlier.
Step-by-step explanation:
In Season 1, Episode 5 of 'The Office' titled 'Basketball,' the small appliance that breaks down is Pam's bread set. The bread set was given to her at her engagement party three years earlier. This incident is mentioned by Mrs. Peters in the dialogue as she lifts a towel that covers a pan.