Examples: Itchy & Scratchy from The Simpsons, The Scary Door from Futurama, or The Grand Inquisitor from Dostoevsky.
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The Princess Bride is one of my favorite examples of this, especially because the “story within the story” is the main story, which is unusual.
Just saw “The Play That Goes Wrong,” and it is a two hour masterpiece of a play within a play.
I see videos of complete productions on youtube. Go watch one.
Awesome and funny play.
Do the Justice Friends from Dexter’s Lab count?