Yes, the talking muffin joke is a classic and fantastic joke. It was a mainstay for over three years on my Ultimate Frisbee club team in college. It spawned many, many spinoffs, including:
There were three muffins in an oven.
One says, hey man . . . we're really bakin' here.
Second says, we're not bacon, we're muffins!
Third one says, , TWO talking muffins!!
If everyone is really in a jolly mood, you can continue with this one:
There were four muffins in an oven.
First says, hey we're really bakin' in here.
Second pulls out a bong, takes a rip, and says, now we're really bakin' in here (this was Ultimate Frisbee, mind you).
Third says, look, we're really not bacon, we're muffins.
Fourth one says, holy sh!t . . . THREE talking muffins!!
Finally, if you haven't discovered it yet, www.muffinfilms.com was also a classic. Especially the Muffin Tree film. I encourage you to explore all the films, however. Happy muffin-joking.