Is anybody conscious of any located blog engine (like for instance) that supports writing posts in Markdown, as well as supports code highlighting?

Almost always there is Tumblr or Posterous.

I've not found one yet but when you want you are able to arrange it yourself it is easy.

I personally use markdown that highlights code via Pygments (using built-in wordpress plugin - calculates from the box). It's not hard to dump css for highlighting from pygments increase for instance blogger css.

I personally use python version of markdown:

import markdown

html = markdown.markdown(text,['codehilite'])

You'll be able to just ready your blog in markdown and parse it through script on your computer and upload the html version to blog, see here how to get it done on Blogger.

I'm not sure if there's such list. The only real engine I have personally seen with your integration is Posterous, where you need to add something similar to #!language just above your code.

For Markdown-powered blog engine list, here's probably the most comprehensive I have seen (via). There's however no reference to code highlighting integration.