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.
Control: Threshold Kids
and Bitch Hunter from 30 Rock
shüm
Threshold Kids is delightfully creepy but ultimately painful to watch, which perfectly fits the setting.
By the same token, Night Springs from Alan Wake
Do the Justice Friends from Dexter’s Lab count?