Yep, she did. Here's the clip. It's at the 1:06 mark in this video: http://www.youtube.com/watch?v=p9iQMJTVsTs For more info: http://muppet.wikia.com/wiki/Episode_108:_The_Terrible_Tunnel "The Storyteller gives a hint as to how Fraggles are born: she mentioned that Fedora Fraggle was "hatched," thus giving the impression that Fraggles come from eggs, like birds." Then of course we have the concept art by Michael Frith of Fraggles hatching from eggs. It's with the 3rd Season DVD set.