I always called my grandmother, Nannie. That's the way she taught me to spell it. She told me that her mother always said that the 'ie' is for humans and the 'y' is for a goat. You know, as in a female goat. Saying this, my cousins always used to spell it with a 'y'. That's the way their parents taught them. It's all personal choice.
I personally prefer the 'ie'.
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