Does anyone know the effects of early malnutrition? Will the kid be physically small all her life, or poaaibly brain damaged? Stupid parents.

Indeed.
To answer your question, early malnutrition does not necessarily inhibit physical growth as much as it prevents brain development. In the first two years of life, the brain is reaching tremendous milestones in terms of growth, language acquisition, learning, and even simple abstraction abilities. It is not an issue of calories or of vitamins as much as it is an issue of proteins, which are found in meat or a healthy mix in a vegan diet. Proteins ingested are broken down to create something called immunoglubulins, which are just long strands of amino acids used in neurite expansion/growth and myelinizatioin. More complex strands are used as regulators and enzymes in cell membranes to regulate ion flows, active transport mechanisms, potentials, and all the wonderful life inside of cells.
Bone growth is an issue of hormonal balances and mauturational triggers that are primarily influences by genotype. Malnutrition can cause weak bones or disorders but the actual size should not matter too much. The mental abilities, IQ, adaptability, etc are highly dependent on proteins and fats ingested early on. This is why milk is so good, it's because it really has all the stuff the baby body needs to grow. This is also why doctors are not concerned when babies are chubby, because that is necessary as a backup in case something drastic occurs in the environment.
Physical size is not as important as an inner life and this is what malnutrition does, crippling the mind, and very often the spirit.
Cheers !
