In a fancy, stylish, or elaborate manner; with decorative embellishment or ostentation.
From the adjective 'fancy' (decorated, stylish) plus the adverbial suffix '-ly.' This adverb describes how an action is performed in a showy or elaborate style.
'Fancily' and 'fancifully' both come from 'fancy' but with different meanings—'fancily' means stylishly, while 'fancifully' means imaginatively—showing how English piles on suffixes to create subtle variations!
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