A very big thing that you don't seem to understand about young children unless you deal with them on a daily basis is that they are very literal. They don't get innuendo or sarcasm until they are a little older and they don't have enough life experience to get the connection
unless their perv little 13 year old cousin fills them in ... so the first thing they are going to think of when you say lollipop is candy, you little deviant trying to look like a bad ass.
Of course he's already looking at girls, and he knows he likes them ... he already has a little girlfriend. He just doesn't know what he's supposed to do with them yet.
As it should be. Things might be different and I might have more grey hair around this time next year, but for right now he's still my little innocent baby.
