Say what?

Erik's Grampa comes over once a week and watches Adin while I take Erik to Barnehage. Most weeks Grampa brings a snack to share with Erik, and usually it's blueberry muffins. This week, after Grampa left and we were eating lunch we had the following conversation:

Erik: Do you know how to make nuts?
Me: Well, you don't really make nuts, they grow.
E: I mean the kind Grampa bringed.
Me: thought: Grampa brings muffins not nuts. said: Uh, I don't know how to make those.
E: I mean the circle nuts.
Me: I have no idea what you are talking about.
E: Kind of like a bagel nut.
Me: Doughnuts! and then laughed until I fell off my chair.