Caterpillar lives in a raccoon?

Usually, when we go back home at night, I'd slow the car down when we approach the rubbish area coz if you're lucky, you get to see the three little pigs. Not exactly accurate. You'd get to see a papa wild boar or a mama wild boar or both and their two kiddie wild boars or just with one of the kiddies or any one of the boars. One morning, we saw a huge monitor lizard. We love going by the rubbish dump area coz it's like our very own safari adventure. But alas, that night, we didn't get to see anything. So Inez thought that we were too late, the wild boars must be home sleeping. I looked at the time and told her since it was still quite early, they're probably on their way.
"You mean they're still awake?"
I said, "Yes, there are some animals that are only awake at night, Do you know any?"
"Is it like raccoon ah Mommy?" Inez asked.
Suddenly Mika was saying, "Caterpillar lives in raccoon."
I'm like, "Huh? Do you know what's a raccoon?" which sent Inez going, "I know, I know, I know! It's like [what'shername] in PB and J Otter!" and Mika went, "Yes! Caterpillar lives in raccoon and then it push its way out and it's a beautiful butterfly!" I laughed. Was I slow at getting what he was trying to say or what? Should've guessed he was going in that direction.
"Oh, Mika, you're a clever boy but it's pronounced COCCoon!" and he dutifully repeated coccoon after me, and said, "Yeah, caterpillar lives in coccoon and pushes its way out and becomes a beautiful butterfly!"
They are back home by the way. Aah, missed them so much!