Ah, I feel so lucky that DD has always been such an introvert, and these comments have been so infrequent. She still doesn't say much in public, and most of our friends are very understanding. DD read something in front of one of my good friends the other day and my friend had the perfect, bland, "yep, that's what it says" response. I am so glad that I warned her ahead of time that DD could read--but, then again, this friend is so great that I doubt her reaction would have been different even if it had been a surprise.
On the other hand, my parents were recently in town and every time DD would read something (and by "something" I mean two words that she could have read a year ago) my dad would totally go overboard and flip out completely. No wonder DD spent the rest of the visit insisting that Grandma read to her instead of the other way around.

Lame. Oh well, I think my dad's head would have popped if she'd really shown her skills.
As for what to say, I'm not sure there's much. I suspect that your conversation will have the least impact if you play it totally cool. Personally, I think a little, "Huh? Oh, yeah, okay," in a totally bored voice goes a long way.
