@simrin-- You can continue eating bread as long as it's whole grain brown bread because that has fiber and a much lower glycemic index than white bread does. The same goes for rice, it's much better to have brown rice which has fiber than white rice.
My rule is that I always prefer the natural and organic alternative if there is one. I also try to avoid anything with yeast because yeast is bad for diabetics. If you want to reduce blood sugar levels, try to have flat brown bread (like the whole wheat pita bread) instead of raised breads which contain yeast.
As for potatoes, a doctor once told me to have small amounts if I really want to. He also said that it's better to have it a day after cooking or boiling. I'm not quite sure why but I think the sugars in potatoes do not affect blood sugar so much when it waits one day. So you can cook it, put it in the fridge, and have it the next day.