During the scene where Mufasa pranks Zazu into briefly thinking that he's fired, the king is bemoaning Simba's immaturity and unwillingness to behave. Zazu reassures his boss by telling him that the crown prince actually reminds him of another cub he used to know, who turned out just fine — clearly referring to Mufasa himself. It's a reference sure to induce a collective "Awwwww" all by itself (Cub Mufasa!), but more than that, it's Zazu doing his job by showing his concern for his king and advising him truly, and it shows that, for all his irritation with Simba, he must believe in him, since he's already been through this before with his father, and just compared them favorably. (Not to mention, if Zazu's been through it before but is still sticking around, he knows the results will be worth it, and it doesn't bother him quite as much as he lets on).
Zazu: I remember a certain cub. A certain, headstrong cub, who's always gotten into scrapes and he achieved some prominence, did he not, sire? Mufasa: (knowing what Zazu's talking about, chuckles) Zazu, you've known me too long.
"They Live In You," and the reprise, "He Lives In You." Mufasa sings it to Simba after giving him a lecture about foolishly going to the Elephant Graveyard, but forgiving him when Simba understands why his father was so scared; it's about how when Mufasa dies, he will be in the stars watching over Simba, with the great kings of the past. Rafiki sings the reprise as she shows Simba that his father lives in him, and Mufasa appears in the clouds.
Timon forgives Simba for endangering him and nearly causing him to drown in a waterfall. He tells them to stop "talking about dying" and that it's all in the past.
In the movie, Timon and Pumbaa saved Zazu when hyenas were chasing after Timon. On stage, Zazu is flying for his life from the hyenas, and Rafiki saves him.
Simba only hugs one person in the show: Rafiki, and she returns it with joy.
