Okay, so I spend an hour trying to figure it out, then as soon as I ask I then find my answer
Modified the JS to the following:
$(function() {
$( "#draggable" ).draggable();
$( "#droppable" ).droppable({
tolerance:'pointer',
drop: function( event, ui ) {
$( this )
.addClass( "ui-state-highlight" )
.find( "p" )
.html( "Dropped!" );
}
});
$( "#droppable2" ).droppable({
tolerance:'pointer',
greedy:true,
drop: function( event, ui ) {
$( this )
.addClass( "ui-state-highlight" )
.find( "p" )
.html( "Dropped!" );
},
over: function(event, ui){
$( "#droppable" ).droppable( "disable" )
},
out: function(event, ui){
$( "#droppable" ).droppable( "enable" )
}
});
});