Introduction to Position Based Fluids
If you have an iPad I highly recommend getting LiquidSketch.  It's a great puzzler about getting pools of liquid into the right place, and the liquid effect is stunning.  It moves exactly as expected, has surface tension, splits and recombines etc - but the really stunning element is colour mixing.  When two groups of different colours combine the mixing of them is just utter convincing, and beautiful.  Amazing how this was all done on a lowly iPad.