selig
blissful
Describing a state of deep happiness, inner contentment, and peace.
Nach dem guten Essen lehnte er sich selig lächelnd zurück.
After the good meal, he leaned back with a blissful smile.

blissful / blessed / tipsy
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blissful
Describing a state of deep happiness, inner contentment, and peace.
Nach dem guten Essen lehnte er sich selig lächelnd zurück.
After the good meal, he leaned back with a blissful smile.

Careful: 'selig' (blissful/blessed) sounds similar to the English word 'silly', but it has a completely different meaning. 'Selig' means happy or redeemed, while 'silly' in German is 'albern' or 'dumm'.
Das Baby schlief mit einem seligen Lächeln im Arm seiner Mutter.
The baby slept with a blissful smile in its mother's arms.
In the meaning 'verstorben' (deceased), 'selig' (blessed) comes directly after the noun and is not declined. This special word order is a clear sign of this reverent meaning.
Mein Großvater selig hat dieses Haus mit eigenen Händen gebaut.
My blessed grandfather built this house with his own hands.
The three meanings can be distinguished well from context. Talk of alcohol points to 'leicht angetrunken' (slightly tipsy). A state of calm and contentment means 'glücklich' (happy/blissful). The mention of a deceased person, often with the special word order, points to the religious meaning.
Nach dem langen Spaziergang saß er selig vor dem Kamin.
After the long walk, he sat blissfully in front of the fireplace.
In the meaning 'glücklich und zufrieden' (happy and content), 'selig' (blissful) is often combined with verbs of expression or state. Common phrases are 'selig lächeln' (to smile blissfully) or 'selig schlafen' (to sleep blissfully).
Die Katze lag selig schnurrend in der Sonne.
The cat lay in the sun, purring blissfully.
happy / lucky
'glücklich' and 'selig' can both describe a very positive feeling. 'glücklich' is the general word for joy and satisfaction. 'selig' sounds stronger and often describes a deep, calm happiness, almost like inner peace. It is not used in every everyday situation and sometimes sounds a little solemn or poetic. If someone is simply satisfied or glad, 'glücklich' is more natural. If the joy seems very deep and quiet, 'selig' fits better.

Mit dem schlafenden Baby im Arm saß Maria selig auf dem Sofa.
With the sleeping baby in her arms, Maria sat blissfully on the sofa.
Nach dem Sieg im Turnier ist mein Bruder den ganzen Abend glücklich.
After winning the tournament, my brother was happy all evening.