Daughter: Yesterday I let Paul (her parakeet) out in the living room.
Dad: Did Mom let you do that?
Daughter: Yeah. She likes him.
Two things:
1) Is "Did Mom let you do that?" OK here?
2) Is it correct to capitalize 'mom'?
1) Yes. 2) Yes. '
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1) Yes.
2) Yes. Capitalise it when it replaces her name, but don't if he asks 'Did your mom let you do that?'