D..
Funny (except for the pulling down of the pants part - I wouldn't allow her to do that).
I recommend that you let her talk to Grandma first. She'll get bored with it and then you can have the conversation. It's cute now while she's really little, but it won't be so cute when she starts having temper tantrums while you are talking to the bank or the electric company, or if she starts getting a little smart-mouthed. Best to deal with re-directing it at this earlier stage.
Dawn