Embellishment doesn't mean lying about the facts. When reading a story to a child, one can add decorative features to his or her voice, facial expression and gestures.
When telling a story, I will include side notes, personal commentary and speculative observations that make it more entertaining to the listener/s.
I'm sure when people say "I must have done it a million times" it's understood that's an innocent embellishment. I love doing it.
If I had a dollar for everytime I told a story that had people rolling on the floor, almost to the point of unconsciousness, from laughing so hard, I could buy a house in the Hamptons.
Total exaggeration.
I smooth it up some, leave out unnecessary details, things like that. Maybe exaggerate a touch, but not too much.