You can start by getting her attention. For example, say something like 'I have a really interesting story to tell you.' Then set the mood. If it's a spooky story, you might lower your voice a bit. If it's a happy story, start with a big smile.
No, it's not appropriate in most social and ethical contexts. Such stories are often considered private and not suitable for public sharing, especially if they involve explicit details. It can make others uncomfortable and violate social norms of propriety.
She could be telling a fairy tale, like Cinderella. Maybe she's always loved that story and wants to share it while doing something else. It could be a way to make the moment more interesting.
Masturbation is a private and personal act. Combining it with story - telling in a public or inappropriate context is not considered proper behavior. It should be kept in the realm of private and appropriate personal time.
The moral could be about obedience. In the Jonah story, Jonah initially disobeys God's command to go to Nineveh. But when he finally does as he is told, the people of Nineveh repent. So, the little girl might be emphasizing that we should listen to what is right, even if it's difficult.
No. Such behavior is inappropriate and not suitable for public or general social situations. It involves vulgar and improper actions that go against common moral and social norms.
Perhaps she's telling a story of a time she overcame her fear. It could be about how she was scared of the dark but then found a little star that gave her the courage to face it. There might be details like she was alone in her room at night, heard strange noises, and then saw the star through the window which became her friend in that moment of fear.
Another option is the story of 'Alice in Wonderland'. It's full of strange and wonderful things. Alice's journey through the rabbit hole, meeting all those crazy characters like the Cheshire Cat and the Mad Hatter. It's a very imaginative story that can easily capture her attention.