diff --git a/compiler/src/knitr/__test__/knitr.test.ts b/compiler/src/knitr/__test__/knitr.test.ts
index 7eddc865..7daeabaa 100644
--- a/compiler/src/knitr/__test__/knitr.test.ts
+++ b/compiler/src/knitr/__test__/knitr.test.ts
@@ -240,7 +240,7 @@ describe('knitr', () => {
 
     expect(ignoreWhitespace(md)).toContain(
       ignoreWhitespace(`
-        \`\`\`{.r-error}
+        \`\`\`{.r-error-output}
         Error in "120" + "5": non-numeric argument to binary operator
         \`\`\`
       `)
@@ -284,7 +284,7 @@ describe('knitr', () => {
       <div class="code-wrapper">
         <pre><code>print(a)</code></pre>
       </div>
-      <div class="code-wrapper python-error">
+      <div class="code-wrapper python-error-output">
         <h6 class="console-heading">Python Console</h6>
         <pre><code>Error in py_call_impl(callable, dots$args, dots$keywords): NameError: name 'a' is not defined
         Detailed traceback:
@@ -301,7 +301,7 @@ describe('knitr', () => {
       <div class="code-wrapper">
         <pre><code>b</code></pre>
       </div>
-      <div class="code-wrapper r-error">
+      <div class="code-wrapper r-error-output">
         <h6 class="console-heading">R Console</h6>
         <pre><code>Error in eval(expr, envir, enclos): object 'b' not found</code></pre>
       </div>
diff --git a/compiler/src/knitr/index.ts b/compiler/src/knitr/index.ts
index 8f7c5fe4..a38efd3a 100644
--- a/compiler/src/knitr/index.ts
+++ b/compiler/src/knitr/index.ts
@@ -84,10 +84,10 @@ function reportErrors(response: string, file: VFile) {
 async function formatResponse(response: string) {
   let md = response;
   md = removeCustomPythonBinNotice(md);
-  md = removeHashSigns(md);
   md = addCodeBlockClasses(md);
-  md = removeEmptyLog(md);
   md = addErrorCodeBlock(md);
+  md = removeHashSigns(md);
+  md = removeEmptyLog(md);
   md = addNewLineAfterKable(md);
   return md;
 }
@@ -96,16 +96,13 @@ function removeCustomPythonBinNotice(md: string) {
   return md.replace(/^\$python\s\[1\]\s"\S+"/, '');
 }
 
-function removeHashSigns(md: string) {
-  let insideCodeBlock = false;
+function addCodeBlockClasses(md: string) {
   return md
     .split('\n')
     .reduce((acc: string[], line) => {
-      if (line.startsWith('```')) {
-        insideCodeBlock = !insideCodeBlock;
-      }
-      if (insideCodeBlock) {
-        acc.push(line.replace(/^##\s+/, ''));
+      if (line.startsWith('```{.knitr-output}')) {
+        const lang = findLanguageForOutput(acc);
+        acc.push(`\`\`\`{.${lang}-output}`);
       } else {
         acc.push(line);
       }
@@ -114,13 +111,18 @@ function removeHashSigns(md: string) {
     .join('\n');
 }
 
-function addCodeBlockClasses(md: string) {
+function removeHashSigns(md: string) {
+  let insideCodeResponse = false;
+  let openingLine = '';
   return md
     .split('\n')
     .reduce((acc: string[], line) => {
-      if (line.startsWith('```{.knitr-output}')) {
-        const lang = findLanguageForOutput(acc);
-        acc.push(`\`\`\`{.${lang}-output}`);
+      if (line.startsWith('```')) {
+        insideCodeResponse = !insideCodeResponse;
+        openingLine = insideCodeResponse ? line : '';
+      }
+      if (insideCodeResponse && openingLine.endsWith('-output}')) {
+        acc.push(line.replace(/^##\s+/, ''));
       } else {
         acc.push(line);
       }
@@ -137,9 +139,9 @@ function addErrorCodeBlock(md: string) {
   return md
     .split('\n')
     .reduce((acc: string[], line, idx) => {
-      if (line.startsWith('Error') && acc[idx - 1].startsWith('```')) {
+      if (line.startsWith('## Error') && acc[idx - 1].startsWith('```')) {
         const lang = findLanguageForOutput(acc.slice(0, -1));
-        acc[acc.length - 1] = `\`\`\`{.${lang}-error}`;
+        acc[acc.length - 1] = `\`\`\`{.${lang}-error-output}`;
       }
       acc.push(line);
       return acc;
diff --git a/compiler/src/mdast/__test__/escaping.test.ts b/compiler/src/mdast/__test__/escaping.test.ts
new file mode 100644
index 00000000..9de85fc7
--- /dev/null
+++ b/compiler/src/mdast/__test__/escaping.test.ts
@@ -0,0 +1,22 @@
+import {
+  testProcessor,
+  unindentString,
+} from '../../test-utils/test-processor';
+
+describe('example', () => {
+  it('should allow the author to use sample markdown headings', async () => {
+    const { html } = await testProcessor(`
+      \`\`\`
+      ## This is a subsection
+      \`\`\`
+    `);
+
+    const expected = unindentString(`
+      <div class="code-wrapper">
+        <pre><code>## This is a subsection</code></pre>
+      </div>
+    `);
+
+    expect(html).toBe(expected);
+  });
+});
diff --git a/compiler/src/mdast/code-blocks.ts b/compiler/src/mdast/code-blocks.ts
index e2c3e47f..27e48c11 100644
--- a/compiler/src/mdast/code-blocks.ts
+++ b/compiler/src/mdast/code-blocks.ts
@@ -73,7 +73,7 @@ function customCode(node: Code, ctx: Context, file: VFile) {
 }
 
 function addConsoleHeading(klass: string) {
-  if (klass === 'r-output' || klass === 'r-error') {
+  if (klass === 'r-output' || klass === 'r-error-output') {
     return {
       type: 'element',
       tagName: 'h6',
@@ -88,7 +88,7 @@ function addConsoleHeading(klass: string) {
       ],
     };
   }
-  if (klass === 'python-output' || klass === 'python-error') {
+  if (klass === 'python-output' || klass === 'python-error-output') {
     return {
       type: 'element',
       tagName: 'h6',
diff --git a/template/src/styles/code.scss b/template/src/styles/code.scss
index 462287f3..326662e3 100644
--- a/template/src/styles/code.scss
+++ b/template/src/styles/code.scss
@@ -32,7 +32,7 @@ code {
     background: transparent;
   }
 
-  &[class$="error"] {
+  &[class$="error-output"] {
     background: var(--errorColor);
     color: white;
     & > h6.console-heading {