Even if there are bad MUGEN creators these days, some actually put effort to their characters, and this list includes most of my favorite characters. Note: There can be only one of the creators creations up here. Also note this list is NOT in order, unlike the worst characters list.
ShinRoyga's Super Mario: Man, sprites are epic, awesome AI, great sound rips, This character is a legend to the MUGEN community.
Judgespear's Homer Simpson: Peter Griffin and Homer Simpson, it was so hard to choose, but I had to go for Homer. Great thought of hypers and auto-drunken mode, great CvS hitsparks, and two fully useable AIs.
FelixMario2011's SpongeBob SquarePants: This was the first decent SpongeBob I ever played as. It was also the first one to have moves taken from my favorite Nick game, "Super Brawl 2". Chowder is good, but his AI is just spams too much and considering SpongeBob was older than new Chowder.
Madoldcrow1105's Finn the Human: He showed the MUGEN community the first Fin that was fully playable and great gameplay game. The idea of Jake being with Finn was also a perfect idea for a character.
PlasmoidThunder's Rotom: Being his first character released was unbelivable. His sprites looked so real from a real Pokemon game, almost like his upcoming Victini Pokemon, and great thought of hypers.
Zobbes's Tepig: Don't get me wrong. This character is MUCH more better than WLAN's characters, and certainly better than the last two Tepigs in MUGEN.
The_None's and Most_Mysterious's Dee Bee Kaw: I will point out he is a headswap of Big Eli King, but the character itself just blows my mind of the endless combos and fast paced attacks, I don't even really care about this guy's sprites.
Warner's Bender: This character deserves to be here for its great thought of hypers, sprites, gameplay, and actually being playable than trash Bender.
Reu's Evil Ryu and Ken: Normally, evil characters are not usually good, but Reu's evil Street Fighter characters are just terrific in sprites, gameplay, and hypers.
Xedarts's Pikachu: Balanced Pikachu, overall one of the best. Great sprites, and easily surprasses most other Pikachus (Tanicfan's, dnzrx's, XGargoyle's).