Our favorite character meal is at Chef Mickey's at the Contemporary Resort. We love the food there (the parmesan mashed potatoes are awesome! :slurp: ), and the character interaction is great. The last time we were there, Mickey, Minnie, Chip, Dale, Donald, & Goofy were there. Donald was in the waiting area signing autographs and posing for pictures, but the rest of the characters came around to the tables. During our last trip, Chip and Dale took turns coming over to our table to give my mother kisses! It was hilarious. Goofy was my favorite - he helped me choose which dessert I should eat. We always go to Chef Mickey's our first night at WDW.
We've also gone to the Crystal Palace. We liked it well enough, but didn't think the food was as good as Chef Mickey's. We aren't big Pooh fans either.
I have also heard good things about the character meals at the Garden Grill at Epcot and 1900 Park Fare at the Grand Floridian.
The princess breakfast at Cinderella's Royal Table at the MK is also extremely popular. We've never been to that one, but that's mainly because my son doesn't really care about seeing the princesses. I would love to go to this breakfast just once though.