Milfy City is a cut above the rest, so you really can't use it as a standard of measurement for quality art and animation. The developers, ICSTOR have made like 5 or 6 games prior to it and have plenty of funds to back them up in hardware along with a fanbase to support them. Ironically their 5 or 6 previous games were all RPGm.
Animation is also rare, with most examples being very simple. The project that i'm working on has animations being added, but even then, they're 6 frames each and just making them took our artist the better part of the week.
So, along those lines, games that I know, from memory, have animations include.
Depraved Awakening - this game is one of the best out there in terms of story, it has very good art for being a single developer, and I simply love each update. Also sex scenes are animated with separate positions as well.
Chloe18 - This one I might be projecting... I feel like there were animations, but they may have been added later, regardless this game is really fun and enjoyable, even though it's kinda stupid.
That might be all I can think of... some games have them and I just don't register it, because they aren't necessary for me.
I'm gonna throw one more in, Coceter Chronicles, but it's an RPGm. however, I played it on recommendation because I too don't really care for RPGm and it is now my absolute favourite game. It does have animated sex scenes, again simple stuff, but animated, and the characters and story and world building are all top notch.
