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Hef & Crystal Harris: Inside Their Engagement

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It wasn't just that Hugh Hefner presented Crystal Harris with an engagement ring on Christmas Eve – it was how he did it that impressed her.

"We were up in the bedroom," Harris, 24, tells PEOPLE, "and my favorite movie is The Little Mermaid, so he had the ring in a Little Mermaid box, and that was so special. I opened it and the first thing he said to me was, 'I hope it fits!' "

Adds Hefner, 84, "I got her a little music box with the Mermaid theme to it, and it just looked like the perfect size and the perfect place to be the ring box. So when she started unwrapping that gift, I reached over and wound it so it was playing music while she discovered what was inside."

Although she cried with happiness, Harris says, "There wasn't any 'down-on-one-knee' or anything like that, because we are not traditional."

The ring is a circle diamond "a little over three karats," says Harris, "and it's on platinum setting and it has diamonds all around the band as well. It's so pretty."

Credit: People