Creating an Archives page with list of posts within the unordered list

Hello,
I’m trying to create an archives page which does this, if you’re on a certain category:

<h3>Recipes</h3>
<ul>
<li>Soups</li>
<li>Salads</li>
<li class="current-cat">Vegetables</li>
<ul>
<li>Asparagus with Soy Sauce</li>
<li>Baby Bok Choy in Garlic</li>
</ul>
<li>Sweets</li>
</ul>

In other words, I’d like to have the posts themselves listed as well as the categories.

I am able to use wp_list_cats to get the categories listed, and the_title seems to get the titles of that current category dumped onto the page… but I’d like to have them nested below the current category in a nice order like above.

Any ideas?

Thanks!