The first kind of happiness, worldly pleasure, is called Vishayana. This can be from a cookie to the nectar of the gods in heaven, Amrita. The second one seems much better and it seems much better to all of us because we are all spiritual seekers. But this so-called enlightened person's perspective sounds a little hazy.
Swami Sarvapriyananda teaches the Katha Upanishad, one of India's most revered texts which is also a part of the Vedas. It is a collection of philosophical poems representing a conversation between the sage Naciketas and Yama (god of death). They discuss the nature of Atman, Brahman and Moksha(liberation).