I took dd (4yrs) and ds (2yrs) to the museum today. One of the curators had dwarfism. My ds walked right up to him, pointed and shouted 'look at the funny man Mummy!' I pretended I hadn't really heard and just said, 'The man works here, say hello.' He then kept repeated what he'd said until we left the room.
I understand this is a very natural reaction from a 2yr old, but I realised I had no idea how to politely handle the situation, and I don't think my just pretending I hadn't heard when I obviously had was very polite. (Ds said it very loudly about 6 times and we were the only people in the room!)
Once we were outside I did explain that calling someone funny is rude, as is pointing, and explained about dwarfism. I think my dd understood but could tell ds didn't understand what I was saying at all.
Any suggestions on how to best respond when this inevitably happens again?