I felt like Street 2 was able to keep up and did a decent job as a sequel.
The humour was there, and it was definitely worth the watch.
There was some extra masala but I feel overall the comical aspect and the acting can overshadow some of the flaws.
Additionally, Stree franchise is about the supernatural so, you can see that they're trying to create a cinematic universe and people who have watched Bhediya may relate to it. However how successful that would be, we'll know only in the future.
But on the whole this move has done justice and I would definitely recommend to watch it, if you enjoyed the first part.