The Top Chef presenter refused to name Krishna Thea's dad when the tot was born and she left her father's details blank on the baby's birth certificate in February, 2010. She finally revealed that venture capitalist Adam Dell - the brother of computer magnate Michael Dell - was the father in January, 2011.
He subsequently launched a custody battle against the Indian-born beauty and now he's celebrating after a New York judge ruled the two-year-old should be given his surname. She will now be known as Krishna Thea Lakshmi-Dell.
Dell has also settled for extra visitation rights after previously challenging Lakshmi for full custody.
The TV personality, who was previously married to author Salman Rushdie, had just begun a relationship with late billionaire Theodore Forstmann when she discovered she was pregnant. Forstmann served as Krishna's father figure from the day she was born.
He died in November (11), but made sure to include Krishna in his will after setting up a trust fund to provide for the tot.