What's Dat?!?

As heard from our bathroom this morning as I was getting ready for work:

(Kevin, stepping out of the shower, drying himself off with a towel)

Kate: What's Dat?

Kevin: A towel.

Kate: No, not towel. Dat. (pointing at Kevin)

(Me: putting on my make-up and SO glad I am not a part of this conversation)

Kevin: ummm..

Kate: Daddy goes pee-pee?

Kevin: Yes, sometimes Daddy goes pee-pee.

Kate walks away.

Kevin is mortified.

(Me: snickering to myself in the background & pointing at Kevin)