I have a few stories...
First incident:
As told to me by my Aunt.... My cousin was about 3 years old, and was inline with my Aunt at the grocery store...he was sitting the cart. My Aunt walks about 10 feet away to grab something off of an end-cap. The lady in front of my Aunt apparently didn't see my Aunt step away and she says to my cousin "Where did you come from?" My cousin replies "from my mon's bagina."
Second incident:
Same cousin, same age, again at the grocery store in the checkout line. A lady standing by them had really curly black hair. So, my cousin exclaims loudly "Mom, that lady has bagina hair on her head!"
Third incident:
As told to me by Dooley of ksufans and goEMAW fame: His son was 4 years old, sitting on the toilet. Starts get an erection. Kid yells "I can't believe my eyes, my penis is getting bigger!"
Fourth incident:
As told to me by my horrified co-worker... She was at the grocery store (these things happen all the time there) in the checkout line and the clerk was a morbidly obese black woman who happened to have very, very dark skin. Her three year old pointed at the woman and shout, over and over again, "monkey," "monkey," monkey." Best part of the story is the lady and her husband are super liberal and in no way ever even talk about race in their home. She was rough ridin' horrified.