I saw that a couple nights again on an entertainment show on CNN. It was hilareous!
From what I heard the two-year-old little girl is Funny or Die's co-founder's daughter and she is at that age where she repeats everything she hears, but soon forgets them.
He is one funny dude. I wasn't real crazy about "Elf" but I loved the Blue Oyster Cult "cowbell" skit. Also dug his performances in Old School and Wedding Crashers.
PS. That was adorable and yet so wrong at the same time...I really hope nemesis is right and she forgets that kind of language, for her own innocent sake.