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No best answer has yet been selected by ACM4. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Here's what The Oxford English Dictionary (TOED) actually says about the word, 'Taffy'...the earliest reference is to the year 1700, where TOED quotes an earlier dictionary: "Taffy, a Welshman or David. Taffy's Day, the first of March." The next reference is from 1709. It reads: "1708 Brit. Apollo No. 98. 2/2 Welch-men are called Taffies from the corruption of the word David."
So, the corruption of 'David' has been the reason for 'Taffy' for some 300 years! Jno is perfectly correct and the name has nothing whatever to do with the River Taff. I think you should come back, ACM4 and specifically award Jno a bonus of three stars!
As I said in my earlier response, The Oxford English Dictionary - generally regarded as the 'bible of etymology - explains that the nickname 'Taffy' is ascribed to a corruption (probably an English mis-hearing) of the Welsh name 'Dafydd'. The dictionary scholars do not even give house room to the notion that it is connected with the similar river-name.
In precisely the same way, the nickname 'Paddy' for Irishmen is a corruption of the name 'Patrick' or 'Padraig'. It's just as well, I suppose, that there is no River Padra or somesuch anywhere in Ireland!