Imagination

As she was eating lunch, Hannah pointed to her blanket in a heap on the table.
Hannah: "I can't sleep in my blanket. People think it's a cave."
Me: "What are they thinking?" (expressed as, "Wow, how silly of them!")
Hannah, taking it literally: "A cave."

Same blanket is draped over her dresser as I walk into the room. Pointing at it, she exclaims, "My sister gave this to me!" I ask, "What's your sister's name?" She replies, "Cinderella." I thought about telling her who that would make her but she hasn't heard the story yet so I decided not to go there. :)