"Emily Lied"

Setting: In the kitchen, Emily and Allie just finished helping Tyler make muffins. Amber and Josh are sitting at the table. Emily and Allie are starting to get on one anothers nerves and are starting to fight.
Emily: GRRRR!
Allie: Mom, Emily lied!
Emily: No, I didn't.
Allie: Uh huh! She lied.
Me: Allie, Emily didn't lie.
Tyler: What did she say?
Allie: She lied. she said GRRR. She was lying.
I start laughing as it all starts to make sense. Allie has confused the words LYING (pronounced LIE-UN as the girls drop the G off of ING words) with LION.