Princess Sleepy is the title character in a Sesame Street fairy tale read by Luis to two of the kids in the park. (First: Episode 3377). A handsome prince (performed by Kevin Clash) encounters her in the forest and tries several methods to awaken her. He finally gives her a kiss... at which point the prince becomes a frog, and Princess Sleepy awakens.
Princess Sleepy wants to reward the frog by taking him to her father's castle and having the citizens gather flies for him, but the princely frog resists and runs off. The pair eventually run past Luis and the kids.