My favorite before I saw this epi was Tales of Ba-Sing-Se. One of the best aspects of this show is the character development. Iroh's tale was great and really deepened his character. As did Zuko's, Katara's and Toph's, and even Momo's. While this recent episode may not have advanced as many characters as TOFBSS, it did an examplary job with Zuko. Letting go of the Blue Spirit was a big step for him. It was his medium for doing good things without admitting his identity. With the Blue Spirit gone, he is now going to have to come out in the open with his good deeds. So, my conclusion: Lake Laogai, best episode ever.