Punky's Dilemma is a short ditty by Paul Simon that has "no social significance", according to the author. However, it is a fun song to play. It features some jazzy chords and rhythm patterns, even including a couple challenging time signature changes. The studio version was played with a capo at the fourth fret using chord shaoes in the key of C, making it in the absolute key of E.
The original was released on Simon & Garfunkel's 1968 album Bookends, but there are also some vintage live versions out there that are very entertaining. Most of those have the capo at the fifth fret but anyone playing it should move the capo to the most comfortable key for the singer.