I’m not sure I have a neat “first draft” followed by a second and third. I take several passes through and I’m sure some parts end up getting more attention than others. I nearly always do this at the computer as my handwriting is illegible – particularly when I have an idea. It helps me to have a specific purpose when going through each time. So one re-edit might focus particularly on character, while another might be primarily ensuring that the plot makes complete sense all the way through. Ditto timeline. I use an Excel spreadsheet to log each day and what happens on it so I don’t mess up and accidentally turn a Sunday into a Monday!
As for making editing fun? I suggest a large glass of wine at your side.