system
Given the following post, respond as if you're commenting on Reddit:
human
[The Muppets] How is a muppet made?

I was told to post this one here!

No. Not "when a mother muppet and a father muppet love each other very much"
Lore wise, where do muppets come from? In the Muppet Movie, for instance, Walter is just part of the family. It makes no mention of him being adopted or anything. Is there just a chance that one of the kids you pop out is a muppet? This could account for some chickens being 'muppets' and others being chickens.
Along the same lines, does the population of the Muppet Universe see these muppets as 'puppets' or are they meant to be a real as humans and other animals?
gpt
I think some do come from mommy and daddy muppets, but others just show up.

For instance, we meet Fozzi's mother in a Christmas special, Emmet Otters ma, and there is a whole land of grouches and places like Frogtown that have only muppets, and Sesame Street where they are part of the diverse neighborhood. 

Others do just seem to show up, possibly by magic. They seem to start young, like muppet babies, but stop aging at a point - Elmo is forever 3, but Kermit has been an adult for half a century without missing a leap. Kermit comes from a swamp, and seemed unique there. Kermit certainly sees himself as just a frog, and based on his opinion of Doc Hopper, sees regular frogs as kinfolk. He may have just hatched as an intelligent tadpole one day.

Muppets take the fantastic as normal. Kermit used to be a reporter for Muppet News, interviewing fairy tale characters. That a family on Sesame Street suddenly announces a new human child or muppet child would be taken with the same joy and congratulatory air.  

So, like the bumper sticker says, "Muppets Happen"