We've hit the age of the difficult questions already!

This morning I was driving Baylor to school, and Nadia asked to sing "Bible songs." Baylor and I know that this means "Jesus Loves Me," so we both started singing it. Nadia tried her best to sing along, piping in when and where she knew the words.
After our concert in the van, Nadia said, "Momma, where is Jesus?" I responded that Jesus was in our hearts.
Her reply? "What's he doing?" I must admit, I was stumped! How do you explain where Jesus is and what he's doing to a two year old?
I told her that he was in our hearts and that he was loving us. Then I asked Baylor to ask Ms. Elaine how she would explain it to a two year old. Baylor immediately responded, "I know what Ms. Elaine would say....she would say that Jesus is in heaven and in our hearts, and that he's preparing a place for us."
I was so proud of him. He has been paying attention after all. Good job Baylor!