Tracee recalled the unforgettable encounter during an appearance on Ellen DeGeneres' TV show on Tuesday (26Apr16), explaining her mum took her backstage after one of the Purple Rain star's concerts at New York's Madison Square Garden.
She said, "He was sort of mingling and talking to everybody and he came over and talked to us. He went to walk away, and he turned around and he was wearing chaps with nothing else underneath and his bare bottom was exposed.
"I was like, 'Woo, my God!' As a child, I was like, 'That is disgusting!' and I was like, 'Mum, that is so gross', and she goes, 'No. That's cool.'"
Tracee's feelings about the music icon merged with her mum's as she got older, when he became the "coolest guy ever".
"We were all so touched by his music and what he shared with the world, but my heart so goes out to his family and his loved ones and those people that had a personal relationship with him," she said as she paid tribute to the music icon following his death.
"When you love somebody that is that magical that the world loves them, you have to share them with the world. I just hope that those people are having their moment to grieve the loss of their friend."
Prince passed away at the age of 57 on 21 April (16).