This level of perceptiveness is what all adults should aspire to, and I gave Sammy due credit for the observation:
LOOK, MOMMY! A PENIS!
That's not a penis, it's your vagina. Boys have penises, girls have vaginas, remember?
BUT MOMMY, LOOK! LOOK HERE. IT'S A PENIS.
Oh, I see. That's called your clitoris. It's not a penis. It's part of your vagina and it's called a clitoris.
IT'S A PENIS.
No, it's really not.
IT'S A PRETEND PENIS.