I was so worried about this very subject, and how i would explain to alice that, yes, chicken is actually chicken etc. I guess i was projecting my feelings onto her though, as i had grown up on a farm and hated when the animals went to be slaughtered etc and was vegetarian for 7 years until i became pregnant with her.
so anyway, when i did tell her she just said "thats nature for you!" and continued to chomp on her steak!