Peru's "miracle baby," who was born with mermaid syndrome, walked in and out of a plastic play house in her nursery school yard Friday. The girl underwent an operation seven months ago to separate her fused legs fully. Peruvians called the girl "the little mermaid."

Milagros Cerron was born with a rare congenital defect known as sirenomelia, or "mermaid syndrome," as her legs were connected from heels to her groin.

"Doctors have successfully reconstructed the child's hips, knees and ankles and that she is "doing well physically." Dr. Luis Rubio, head of the medical team that separated Milagros' legs, said Friday.

However, Rubio said the girl will need another operation to reconstruct and repair her urinary and sexual organs within two years. "We've gotten past the first stage, but it's not the last," Rubio said. "There's a long way to go."

In June 2005 doctors separated her legs to above her knees and performed another surgery seven months ago to separate the remaining four inches of fused tissue just below the groin.

The congenital defect occurs in one out of every 70,000 births and is almost always fatal within days of birth. The Associated Press quoted Rubio as saying Tiffany Yorks, a 17-year-old American, is the only other person known to have undergone successful surgery to correct the rare defect.

Milagros, which means "miracles" in Spanish, turns 3-year-old next week. Her parents come form poor village in the Andes mountains but Lima's municipal government has taken responsibility for her medical care.

.