My sister is a nanny and she was grocery shopping with the children she watches. They were passing through the Holiday section when the 5 year old sees a menorah and points to it, "Look Julia! A minority!"
When the children were a lot younger I always meant to make notes of some of the funny things they said, but sadly never did and there were some classics that I can't recall. My son never liked spikey food - spicey - or grapes with bones in - pips!!
I'm working on a hub on this very subject, and I'll give you a preview:
Ya know those Jib-Jab emails where you can place the faces of you, your fam, and your friends on the characters in the videos? Last Christmas, we got one entitled "Elf Youself." I put the faces of the grandkids on the dancing elves and sent it to all the kids. My grandson, Tristan, who was five last Christmas, was fascinated with the video, and he often asked his mom to show it to him. One day he told her, "Mom, I want to F myself up!" She was super upset until she realized that he wanted to see the "Elf Youself" video. lol
When I was six months pregnant with my third child, my three year old came into the room when I was just getting ready to get into the shower. She said, "Mommy, you are getting fat!" I replied, "Yes, honey, remember Mommy has a baby growing in her tummy." "I know," she replied, but what's growing in your butt?"