Puss in Boots: Feed me, if you dare.
Donkey: Man, you are a cat-tastrophe.
Puss in Boots: And you, are ri-donk-ulous.
Shrek: You know, I always thought I'd rescued you from the Dragon's Keep.
Princess Fiona: You did.
Shrek: No. It was you who rescued me.
Donkey: Why don't you just tell her what you told me? You know, about how you're her true love and you came from an alternate universe.
Shrek: Oh, and while I'm at it, why don't I tell her that you're married to a fire breathing dragon and you have little mutant donkey dragon babies?
Donkey: I do?
Shrek: You saw what happened. She's going to think I'm crazy.
Donkey: I'm a daddy?
Brogan: Looks like we're having curly toed weirdo for breakfast.
Answer: It was stated in this scene that Fiona was rescued from the tower, meaning this scene took place at the same time as Shrek 1, when the King was still alive.
Casual Person
But they didn't have kids in the first?