The Princess Royal upset well-wishers yesterday, prompting them to accuse her of forgetting the meaning of Christmas.
The Queen's daughter snatched a basket of flowers made by an elderly Royal fan and snapped: "What a ridiculous thing to do."
Mary Halfpenny, 75, said: "It was a really hurtful thing to say. I've made baskets of flowers for the Queen, and she has always said how nice they are.
"It takes a long time, about three hours, to make a basket of flowers and it costs me about £10.
"I wanted Prince Harry to give the basket to the Queen Mother for me, but Princess Anne just snatched it very roughly."
Mrs Halfpenny, from Leicester, who has been a Royalist all her life, and her friends had waited in the cold for five hours since 6am for a glimpse of the Royal party at Sandringham.
Lesley Hirst, 53, from Lancaster, said: "I think Princess Anne was exceedingly rude - she just snatched the basket from my friend.
"This is the first time I've come here at Christmas and it will be my last."
The no-nonsense Princess Royal then told her nieces, Princess Beatrice, 12, and her ten-year-old sister Princess Eugenie, to "get a move on" and not to take flowers from well-wishers.
One young woman, who travelled from California to see the Royals at church on Christmas morning, was close to tears.
"That was just a blur - they didn't even stop to take my flowers," she said. "I've learned my lesson - no more flowers, no more gifts."
The American, from San Diego, asked not to be named but said she had spent £2,000 on the trip to Norfolk.
A Buckingham Palace spokeswoman said later: "The Princess Royal meets thousands of people every year, and it is clear that today there has been a misunderstanding of some kind."
However, the Queen Mother spread Christmas cheer when she braved the freezing temperatures to attend the traditional morning service at St Mary Magdalene's.
The 100-year-old Royal, who is recovering from breaking her collar bone last month, ignored the Queen's advice not to venture out.
The Queen had been concerned that attending church for the second consecutive day would be too much for her frail mother.
On Sunday, the Queen, Queen Mother, Prince William, 18, and other senior Royals were at St Mary Magdalene's for a special, televised service at which the Archbishop of Canterbury, Dr George Carey, gave a sermon.
After the 40-minute service, the Queen and Queen Mother were handed flowers from local children, including two-year-old toddler Adam Panter, from King's Lynn.
The Prince of Wales, and the Earl of Wessex and his wife Sophie also chatted to people in wheelchairs from a nearby nursing home.
But the Royal walkabout was shorter than in previous years and the crowd, at about 1,000 strong, was half the size of last year.
The Princess Royal's teenage daughter, Zara Phillips, showed signs of the crash on Friday when her Land Rover clipped a wall and overturned on to its roof on a foggy country lane in Gloucestershire.
Nineteen-year-old Zara's nose and lip were cut but she escaped more serious injury.
Altogether, 19 Royals attended the Christmas morning church service but Princess Margaret, 70, did not make an appearance.
A palace spokeswoman said Princess Margaret had not attended because she was "feeling tired".
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