J.E.
Hi M.,
So not to be rude or anything but cut your daughter some slack. You're making WAY to big of a deal of this. She is 3...she is pushing your buttons and doing it on purpose. She's gotten a "reaction" out of you and others by calling her the wrong name...so of course she'll continue to do it to get WHATEVER reaction she can. You need to be the one to ignore it, not Gracie. Gracie may correct her, but you should leave it be. You can every now and again if it continues, gently remind your daughter that her name is Gracie, not Stacy. My oldest daughter's name is Bryana (sounds like Briana) and I can't tell you how many kids have messed that one up, but it's not a big deal...it's just part of how they learn. I suggest you take a step back and cool off on this one. It's really not a big deal and I think that it's been made into a big deal which was caused by yourself. It sounds like you are really worried that she isn't going to come over and play anymore... I think if you are that concerned, then speak to her mom about it so that Gracie doesn't get so amped up about it too, it happens and like I said before, I think because it's been made this big thing, your daughter is continuing to do it for the main reason of getting a reaction.
Best of luck.
J.