The documentary, which bagged the award here Sunday, traces Pinki's journey from being ostracised to being treated like a normal girl after a social worker helped her undergo surgery.
Mylan says the happy ending inspired her to show Pinki's story.
"As a filmmaker who focuses on social issue documentaries, it is rare that I get into a film knowing we're likely to have a happy ending. So, I was excited to tell the story of this beautiful hospital and a team of doctors and social workers treating their patients with such compassion and quality care and making a positive impact, " said Mylan.
"We didn't have any money for the surgery and I used to wish that she would die. But things changed after the operation. And I really wish that the film wins at the Oscars, " said Pinki's mother before the ceremony.
"Spielzeugland (Toyland)" won the best short film (live action) Oscar. A Mephisto Film Production by Jochen Alexander Freydank, the 14-minute film is set in 1942 and is the story of a German boy who believes that his Jewish neighbours are going to Toyland.