Can I get a vowel?

Paul is able to identify all of the letters in the alphabet (capital ones at least, we are working on lowercase) and has taken to spelling everything he sees. For a while everything spelled "Paul", but he is slowly starting to figure out that different groups of letters have different meanings. He has learned that a red octagon with the letters S-T-O-P spells "stop", and knows now that only the letters P-A-U-L spell "Paul". For everything else, he uses his own little version of context clues to figure it out. He will say all of the letters and then announce what they spell. It can be pretty darn funny. Some of my favorites:

• At Paul's favorite hangout: "J-C-P-E-N-N-E-Y. Mall"
• While drinking from an old glass mug at my folk's house: "A-S-U. Hot cocoa. A-S-U. Cup. Mommy, what A-S-U spell?" ??? Upon inspection of the cup right side up I replied, "USA honey. From back when we actually made things here." (Besides plates and tires of course.)
• While driving his giant digger all over the kitchen: "T-O-N-K-A. Really big digger." That's for sure.