annotated.js

function(
  a, // the string source from which the template is compiled
  b  // the default `with` context of the template (optional)
){
  return function(
    c, // the object called as `this` in the template
    d  // the `with` context of this template call (optional)
  ){
    return a.replace(
      /{{(([^}]|}[^}])*)}}/g, // a regexp that finds the interpolated code: "{{<code>}}" and allow object definition
      function(
        a, // not used, only positional
        e  // the code matched by the interpolation
      ){
        return Function(
          "x",
          "with(x)return " + e // the result of the interpolated code
        ).call(
          c,    // pass the data object as `this`, with
          d     // the most
          || b  // specific
          || {} // context.
        )
      }
    )
  }
}

index.js

function(a,b){return function(c,d){return a.replace(/{{(([^}]|}[^}])*)}}/g,function(a,e){return Function("x","with(x)return "+e).call(c,d||b||{})})}}

LICENSE.txt

            DO WHAT THE FUCK YOU WANT TO PUBLIC LICENSE
                    Version 2, December 2004

 Copyright (C) 2011 Jed Schmidt <http://jed.is>

 Everyone is permitted to copy and distribute verbatim or modified
 copies of this license document, and changing it is allowed as long
 as the name is changed.

            DO WHAT THE FUCK YOU WANT TO PUBLIC LICENSE
   TERMS AND CONDITIONS FOR COPYING, DISTRIBUTION AND MODIFICATION

  0. You just DO WHAT THE FUCK YOU WANT TO.

package.json

{
  "name": "template",
  "keywords": ["template", "HTML", "render"]
}