I think the parts where he is talking about where his baby is growing, he's talking about parts of himself: on his toes...black hairs grow, out of his thumbs, his red baby runs...that's blood...and out of his ears his little grey baby hears..that could possibly be grey ear hairs? Maybe it's far fetched but I think this song also reflects Devendra's common theme of having a child still in his adult body.
I think the parts where he is talking about where his baby is growing, he's talking about parts of himself: on his toes...black hairs grow, out of his thumbs, his red baby runs...that's blood...and out of his ears his little grey baby hears..that could possibly be grey ear hairs? Maybe it's far fetched but I think this song also reflects Devendra's common theme of having a child still in his adult body.