Open Caskets and Kids don't Mix

We had an open casket funeral for my grandmother. Before the funeral (and happily before many people were there) I was at the casket with Keona, my niece. She will be six next month. She had questions (as always).
The conversation went something like this:

Keona: Why are the flowers there? They're in the way and we can't see all of her.
Me: Well, you only need to see the top of her, like her face. That's the part that we look at and talk to, right?

She did not look convinced.

Keona: Why does she have a pillow?
Me: Um...it looks nicer.

She was okay with this.

Keona: Is she sleeping?
Me: No, she's dead.
Keona (looks confused although I know her dad explained this to her)
Me: You know, she's in heaven now.
Keona (looks around and then at me): This isn't heaven.
Me (trying not to laugh): Well, this is just her body. The part that makes her alive is in heaven.

She didn't look convinced.

Me: Let's go play in the nursery.

Well, what would you have done?