Replying to a reviewer - should use (Anonymous) if citing paper by co-author?
Put yourself in the shoes of the reviewer, They may want to check that paper, having to search for it just by title (and finding out the author's name as a byproduct) just gives them a hard time. Or just say that the only work on the subject you are aware of is by the work group of the current authors.

Yes, "blind" review is often less than totally blind. It can't be, reviewers do work in the same (or nearby) area, and so know the say hundred or so researchers working on that topic, at least superficially.