What began as a nightmare for a seven-year-old Taylor Swift fan became a dream come true. Little Grace Markel was struck by a car while walking into a Taylor Swift concert and hospitalized for severe injuries ... and wound up being consoled later by Swift herself.

Grab your Kleenex, kids!

While exiting a taxi with her father at Swift's Aug. 10 Chicago concert, Columbia, Mo. native Markel was struck by an uninsured, unlicensed driver in an SUV. The girl suffered two skull fractures, a slight left orbital fracture, multiple head lacerations, a severe concussion and road rash from head to toe.

Markel's parents got her another ticket to Swift's Nashville concert for Sept. 21, and the 'Love Story' singer surprised the family by taking them backstage to meet her.

"Taylor greeted Grace by her name and immediately knelt down and hugged her," Markel's mom Amy told PEOPLE. "She told Grace she had a cold and asked Grace to sing extra loud to help her out." So cute!

Swift autographed Markel's shirt and took photos hugging the little lady before going onstage. Markel, who was recently cleared to go back to school after her injuries, said that Swift was nicer, taller and prettier than she'd even imagined.

But it was Amy who was truly the most impressed by the star. "[The meeting] was just a warm and genuine exchange that made it feel like time has stopped," Amy gushed, "and it was just the two of them."

Sounds like a 'State of Grace' indeed.

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