If you think your newborn (male or female) appears to have little breasts, you're not going crazy. Babies are exposed to the same hormones that stimulate a mother's milk glands while in the womb, and sometimes they have the same effect on the fetus. In some cases, breast milk can even be expressed from a newborn. Within a few weeks or months, the breast tissue will shrink on its own.
Source: Flickr user j.part.no
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