Yes. Deaf babies who are undiagnosed learn the meaning of things like milk, play, all kinds of things that interest them by lipreading, and often it makes it hard for the parent to believe they are actually deaf.
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When we adopted our daughter who has mental retardation, she was almost 6. When we asked her to touch her hair,ears, mouth, nose and chin, and eyes, some days she could do all of them, some days she mixed up hair, ears, and eyes.
One day she was standing and watching me at the window while I was in the backyard planting flowers. I waved at her, and then for some reason, I have no idea why), I mouthed "Touch your hair," and she did. I mouthed all the 'touch your...' phrases she should know, and she did them all. I lip synced a few more things, she understand them and responded the same as she did when I talked to her.
I made an appt with the doctor. To make a long story short, we dug up her old records (adopted kids often don't have them), he looked at her ears and we realized she'd had asymptomatic ear infections almost all her life. Sometimes they cleared up enough for her to hear, sometimes they didn't. She had a tonsiladenoidectomy, and the ear infections went away, and she could hear afterward (they said a slight hearing loss in one ear, just enough so we shouldn't whisper to her on that side).
If a profoundly retarded child with severe ear infections interfering with her hearing could teach herself to lipread a few words, it makes sense that a deaf child with 'normal' intelligence could do that even better. She also read body language surprisingly well- when asked a question she could usually tell by our body language whether to answer yes or no. We learned this when started lip syncing things to her instead of speaking to see what other things she understood through some other method than speech.