"She sings so well...and she's so pretty," Elmo told E!'s Daily 10 on an exclusive set visit during the making of the suddenly controversial duet.
"We're talking about her and she's smiling."
Although Elmo might think she's "so pretty," the feeling wasn't universal.
In a statement released earlier today, Sesame Workshop has cut the video from next Monday's season premiere of Sesame Street, after a small group of folks whined that Perry was literally popping out of her dress while performing "Hot N Cold" with Elmo in a clip leaked on YouTube.
The conservative Parents Television Council, which had been outspoken about what it called a "disturbing" performance, cheered the move.
"While there is no doubt that Ms. Perry is an extremely popular performer today, the reality is that millions of families place their unbridled trust in Sesame Street as a source of age-appropriate entertainment for their children and grandchildren," said PTC President Tim Winter. "We are grateful to Sesame Workshop for their prudent action in this matter."
Daily 10 was there during the taping of the segment and spoke to both Perry and the furry Sesame staple.
"I sang 'Hot N Cold' because Elmo told me he wanted to play," the hitmaker said.
"Play dress up," chimed in Elmo.
"Play dress up, but then he wanted to run away. So I couldn't really tell, so I thought 'Hot N Cold' was appropriate for our visit," she continued.
In a tweet this afternoon, Perry lamented the cancellation.
"Wow, looks like my play date with Elmo has been cut short! If you still wanna play see it at www.katyperry.com Tag you're it, Elmo!"
(Originally published Sept. 23, 2010, at 1:01 p.m. PT)
For more on Daily 10's exclusive with Elmo and Katy, tune in tonight at 7:30 p.m. ET!