Michele, 27, voices Dorothy in the animated sequel of the film while Short plays the story's new villain, Jester, the Wicked Witch of the West's younger brother.
"You're way better than that hack Judy Garland,” the 64-year-old actor said at the film's premiere red carpet.
"I'm pretty sure that a house is going to fall on you later for saying that,” Michele responded.
Garland famously portrayed Dorothy in the 1939 fantasy film, The Wizard Of Oz.
The upcoming sequel tells the story of Dorothy as she returns to Oz "to try to save her old friends the Scarecrow, the Lion, the Tin Man and Glinda" from Jester.
Legends of Oz: Dorothy's Return also stars Dan Aykroyd as Scarecrow, James Belushi as Lion and Kelsey Grammer as Tin Man. The film hits theaters on May 9 .