thomblake comments on Great Explanations - Less Wrong
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Lazy Functional Programming: Learn You a Haskell for Great Good by Miran Lipovača
It's a bit long to qualify under requirement #2, so in particular I'd like to highlight chapters 11-13 as a great explanation of functors and monads. (Albeit one that requires you already grok haskell, hence the recommendation for the whole book).
I highly recommend it because it has a cute blue elephant on the front cover and a bonus monkey on the back.