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Matilda is already very popular in England and Tilly is a popular shortening - it's been used frequently as a given name in the past 10 years. I don't like Matilda personally, and though I think Tilly is very sweet for a little girl, it doesn't work on an adult. I think it's perfectly avoidable though - of 3 friends who have daughters named Matilda only 1 is known as Tilly, the others are Tilda and Mattie

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http://www.behindthename.com/pnl/167578