There are only a few who get it perfectly:

Joel RL Phelps ("When we meet over violence and sweets...")
Steez Albizouioui ("The base of her neck where her necklaces close...")
The Frogs
Whitehouse

There are some who get it sometimes:

Neil Young
Nina Nastankonia
Go-Betweens
Elvis Costello?

I'm reaching here.

Robert Smith
Kurt Cobain
That chick from Portishead(never caught her name)
Bob Dylan
David Yow
Thom Yorke (sometimes)

*Bjork (in terms of naivity... hey, it's cute)

I'm probably forgetting the best ones. Oh well...

Any Chavez lyrics.

Good call Chimp!

Chavez ist rad!

bobby pollard has some good ones

jeff mangum

James McMurtry

singers should be seen and not heard

Ronnie Van Zant
Ice-T

I'll second JRLP without reservation. Tom Verlaine, too. Bob Dylan, frequently. A lot of Robert Pollard. Tim Midgett and Andy Cohen are no slouches, either. Tom Waits has been known to hit it exactly right. Jandek has some great ones, too.

In many cases, of course, the sound of the lyrics is way more important than what they are, and some of the mishearings are better than what the singer intends. And in those cases, it's better not to know the truth.

I'll go with a punk twist and say Hot Water Music... and Braid.