I was wondering when the live-action bits would start. They ended up being half the cartoon! I totally saw that coming after awhile. I appreciate the puppetry. No, I don't consider puppetry to be a form of animation. A lot of people do.
It still belongs under live-action. I couldn't imagine being lactose intolerant. I freaking love milk! I love the techniques of both live-action and animation. I could see your arm! This was nicely creative.