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On Tuesday, the US first lady visited a local school and orphanage before attending a music and folk-dancing concert, along with her daughters Sasha and Malia and over 500 Russian children.

Other news stories said the girls did not attend the visit to the orphange, but rather stayed back at the hotel with Grandma, "making dolls."

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The AP has it right:

Two of the children gave her homemade presents — one of them an intricate origami figure — and a girl in a wheelchair asked Obama in Russian if she had any children. The first lady responded through a translator that she has two daughters — Malia and Sasha — who she said remained behind in the hotel with their grandmother.