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I do prefer it spelled Cady. I think it is a gorgeous name - and even though they are nearly said the same, for some reason I think Cady/Kady is MILES better than Katie. I don't hate Katie, but I would never, ever use it as a NN. I would use Kate. But I love Cady just as much as Kate. It's weird, because like I said, I say Katie and Kady pretty much the same. I think the emphasis is more on the "D" and also I drag "Kady" out more. But the differences are very slim.