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I love Penelope! It's recently moved up into my top 5. I've never really liked the nickname Penny, but Poppy is cute. I also love Nelly, and have been considering Polly as a nickname for Penelope as well. Because Penelope is 4 syllables, I would likely use a shorter MN. As for style, I'd go for something old-fashioned chic. Penelope Jane comes to mind.