I have just sat in my thinking-dome and come up with my picks of books published in 2012 (in addition to THE LAST BALCONY and THE FIRST BOOK OF CLASSICAL HORROR STORIES and BUSY BLOOD!):
The Wind Through The Keyhole by Stephen King
Dadaoism – an anthology from Chômu Press
This Hermetic Legislature (an anthology from Ex Occidente Press)
The Ten Dictates of Alfred Tesseller by D.P. Watt
The Truth Spinner – Rhys Hughes
Peel Back The Sky – Stephen Bacon
Motherless Child – Glen Hirshberg
Numbered as Sand or the Stars – John Howard
Eyepennies – a novella by Mike O’Driscoll
The Aesthete Hagiographer – Derek John
PS: Two more in comment below.
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Watch out for JANE by PF Jeffery in 2013 – that, as part of the ‘Warriors of Love’ series of twelve discrete novels, I predict will, sooner or later, become a best-seller of the highest objective quality, with definite cinematic potential.
Last Balcony: Essex Serpents and Pier’s Echo 
I have since realised these two books were first published in 2012 and thus should be included in above list:
Secret Europe by John Howard and Mark Valentine
BLACK HORSE and Other Strange Stories by Jason A. Wyckoff Only paper books have been considered when drawing up this list.I will now consider the Favouritest Favourite below…
FAVOURITEST FAVOURITE 2012
Since compiling the above list this morning, I have been weighing in the balance my most favourite favourite. Each book has a lot going for it for different reasons. Sizeable substantiveness or acute punch. Texture or plot. Wit or sublimity. Aftertaste or real-time reading. Binding or bonding.
For its acute punch and stunning aftertaste, I give the rosette to THE AESTHETE HAGIOGRAPHER. A very difficult decision.