Give props to the local liquors that make drinking in New York a bespoke experience. Here are our favorites (and their best bottles).

Tuthilltown Spirits: Hudson Manhattan Rye
Choosing a liquor from the first (and most notable) distiller in New York State since Prohibition is practically impossible — you can't go wrong with the snazzy packaging and full-bodied flavors. Hudson is our favorite because it's super-smooth and slightly sweet, but with the delicious edge that denotes a great rye. And you can find it in more than 100 bars in the city.
About $42 per bottle around the city, or here.

Warwick Valley Winery: Bourbon Barrel-Aged Apple Liqueur
West of White Plains is Warwick, which houses New York's first fruit distillery, American Fruits. While the Pear Brandy is certainly tasty, the Apple Liqueur takes advantage of the state's best fruit, and has a smokey base thanks to barrel aging. A perfect after-dinner quaff. About $15 here.

Harvest Spirits: Core Vodka
Harvest Spirits ditched potatoes, instead producing vodka from apples for a softer, richer flavor. Made in small, labeled batches and pressed in an antique rack-and-cloth cider press, Core Vodka is a simple solution to the oversaturated (and over-flavored) vodka market. Excellent with mixed drinks, or in an apple martini to bring out the subtle flavoring. 
About $30 here.

Coming Soon: Brooklyn
Two distillers are ready to open across the river in early 2010. New York Distilling Company has an all-star cast for their gin, including Brooklyn Brewery co-founder Tom Potter and spirits expert and chairman of Slow Food USA, Allen Katz. Also, focusing on bourbon and whiskey, Kings County Distillery will bring Kentucky to the borough with corn-based spirits.
New York Distilling Company, 511 8th St.
Kings County Distillery, 35 Meadow St.