Not necessarily favourites, but ones I've seen.

• Howl's Moving Castle
• Princess Mononoke
  • Fun fact: Unsure of the total validity of this... but it may have been partly inspired by the manga Mudmen by Daijiro Morohoshi - based off of Asaro Tribe Mudmen in PNG, my mama graun.
• The Cat Returns
• Spirited Away
• Ponyo
• Kiki's Delivery Service
• When Marnie Was There
• Arriety
• The Boy and the Heron
• Porco Rosso
• Castle in the Sky
• My Neighbour Totoro

I think I've seen Nausicaä of the Valley of the Wind, but can't remember it much...