The two things I remember clearly are these: First, that the paleontologist is a short little woman with grey hair and round glasses (you never see her eyes). Second, at the end of the story, she's sitting in a rocking chair, reading a bedtime story to the dinosaurs ranged around her. The stegosaur has a blanket over his back, through which you can see his spine plates, and the tyrannosaur is sitting in the corner, I think with a teddy bear in his little-bitty arms.
Does this thread any beads in anybody's mind?