Hope this is clear, and you might have ideas as to what is going on:
Me: DD, I want you to be good for Nanny, then I might get you a treat when I come back.
DD: Treat?
DD: I want circles.
Me: Circles?
DD: Lots of circles.
Me: What circles?
DD: Lots of circles. Red, green, pink, blue, purple, chocolate & orange.
Me: What happens to the circles? (I'm thinking perhaps it is a game at preschool)
DD: Put in cup.
Me: Then what happens?
DD: Eat all.
Me: Smarties? Do you mean smarties?
DD: Yeah, yeah, yeah...
Why can she describe the colour & function & remember that last time she had them I put them in a cup, but not know to name them or their category? She didn't even call them sweeties, just circles?