Shrek 2

This film takes every element of the last and elevates it in every single way. Obviously better animation as well as more fleshed out characters. It introduces a host of new interesting and likeable characters which expands the world building and relationships. The plot is also elevated upping the character drama and forcing the characters to adapt creating new interesting and unique interactions and relationships. A phenomenal film and the perfect example of a sequel, also fairy god mother is really hot.