Sabrina,
You and I are in the same boat, namely we both have short hilly commutes (mine is around 15mi). Though I stopped updating the MPG database on this site some time ago, my current mileage is in the 27-29 MPG range.
I have followed every advice here to little avail. Break-in didn't help. Cooler temps didn't help. 40psi tires didn't help. In fact, only two things really seem to affect my car's MPG. One was when I changed from synthetic engine oil to regular oil (courtesy the Toyota factory service plan that doesn't cover synthetic!).. that cost me two MPG. The other is running the air conditioner which costs another 3+ MPG.
I tried selling my TCH but having leased it last July when there was a waiting list for the car, I'm totally upside down in the lease and will now have to live with it, taking comfort in the fact that it's not contributing much to global warming.
p.s. One poster here was correct that
any car you take on such a short/hilly commute will see sub-EPA City mileage. My previous car, a V8 MBZ E420, got 14-15 MPG on my commute yet was rated 18/25 by the EPA. And no, there's nothing wrong with my TCH.. I can easily get 40+ MPG on the highway.