M: Hey, what's under there (as she points)?
Anybody: Under where?
M: HAAAAA! You said underwear!
As Thomas shows everyone his tooth that just fell out:
Me: That is cool beans, bud! Congratuations!
M: Beans? Where are the beans? I thought that was a tooth.
The girl takes everything literally:
As I come out of the bathroom with my glasses on (and my contacts out):
M: Did you just take your eyetacts out?
As we are all watching a National Geographic animal show, she sees what appears to be either a crocodile or an alligator:
M: Whoa! That was a big Cracigator!