The 'stache returns to the screen next year. Credit: AP Photo.

Like Will Ferrell's mustache, the plot of "Anchorman 2? has thickened. Ferrell told ABCNews.com this week that the sequel will focus on Ron Burgundy and the Action News team mixing celebrity stories with hard news (i.e., panda births).

"We are going to focus on and comment on the transition from what was kind of traditional news to where entertainment forces started melding in, and Ron's going to be one of the catalysts of that," he said.

Speaking of that mustache, for the record, it's real.

"I'm surprised by how many people have walked up to me and asked, 'Is that mustache real?'" he said. "Of course, I say, 'Yes, why would I be wearing a fake mustache?' I mean, why would I be walking around wearing a fake mustache?"

But back to the movie: director Adam McKay recently told The Playlist that "Anchorman 2? will feature full blown musical numbers, some with dancing. Ferrell wouldn't confirm that, and demurred, "it would be very premature for me to comment on anything, only because we're still kind of working on the script, we rewrite and we rewrite and it changes 8,000 times."

He offered one exclusive: "The only thing I can tell you for sure is that the movie will be filmed entirely in English."

Phew. While working on "Anchorman 2," Ferrell's promoting another project - Cancer for College, a charity that offers college scholarships to high school age cancer survivors. He's worked with them for more than a decade, and this year, he and his 5-year-old son Mattias crafted a holiday coffee cup that will be sold at 7-Eleven, with proceeds going to the scholarship fund. Yes, Will Ferrell crafts.

"I've always been super crafty," he said. "There's a lot of glue in my house, lot of glitter, lot of pine cones, and lots of dried macaroni. It doesn't mean that I'm any good."

PHOTOS: Will Ferrell Shows Off His 'Stache