After Kelly was born, Steffy wanted to give her a sister to grow up with who was close in age just like she had a twin sister, Phoebe (Mackenzie Mauzy), who was killed in a car crash (via Soaps.com). So, Steffy adopted a little girl she named Phoebe, after her twin, believing it was all on the up and up. Steffy raised little Phoebe for nearly a year before learning she was really Beth, the baby that Hope and Liam were told had died at birth (via Soaps In Depth).
Dr. Reese Buckingham (Wayne Brady) needed to pay off gambling debts and stole Hope's baby to sell on the black market. Steffy's mom, Taylor (then played by Hunter Tylo), didn't realize the fees she paid to find a baby for Steffy to adopt were part of an illegal sale (via Soap Central). Steffy was devastated when she had to hand back to Hope and Liam the baby she loved so much, but at least Kelly still had a sister close in age as Liam fathered both little girls.
