Conversation with a 2-year old

Neviyah: (running into the bedroom)  Momma, I'm scared!  The big bad wolf was scaring me!

Me:  The big bad wolf?  He doesn't live here.  He lives...(tapping head and prompting for the "imagination" answer)

Neviyah:  Outside!  He yives (lives) outside, bwo-wing (blowing) stuff down and he is coming to our house but we telled him that no, no, no, big bad wolf, you tan't (can't) bwo our house down.

Me:  The big bad wolf doesn't live inside our house.  And the big bad wolf doesn't live outside of our house either.  He lives (tapping head) in our imagination.

Neviyah:  He lives in my imagination?  He does?

Me:  Yes, he does.  What do you think about that?

Neviyah:  It is good to be the big bad wolf in my imagination.

Me:  Why is that good?

Neviyah:  (No answer.  She was clearly done with the conversation.)