Neonatal Breast Enlargement with Discharge (Witch's Milk). Falling levels of maternal estrogen at the end of pregnancy, triggers the release of prolactin from the newborn's pituitary.
Correct answer: Yes, this is post-partum mammary gland tissue hypertrophy (and secretion) due to maternal hormones derived from the placenta. It's a harmless condition that's seen in many children. It resolves spontaneously in a matter of days.