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The act of adding adult humor to g-rated animated films that kids wont understand, but the adults would find funny.
Examples of The Shrek Method:

"Little man, my best friend is a talking car."
-David Hasselhoff in "Hop"

"That must be Lord Farquaad's castle... Do you think he's maybe compensating for something?"
by Gringo The Clown July 26, 2011