Yes, she is completely naked

Having taken off the last piece of clothing she was wearing, Lily regains control over her body and instantly covers her boobs with her right arm and covers her pussy with her left hand.

"Please John! I don't know what you want, but please...let me put my clothes back on..." Lily says sounding very sad.

"Mom. I command you to not be able to cry" You command as you can see she is probably about to cry.

"Yes Master" She replies with nothing to follow up on that.

"Oh and also...Mom, I command you to stop covering yourself" You demand.

"Yes Master" She agrees as her arms drop by her sides, fully revealing all. "Nooooo!" She says unable to cover herself up. "John! Stop looking at meeee!" She moans as she starts blushing. "I'm your mom! T-t-this is wrong!" Lily says, all embarrassed.

She notices the bulge in your trousers and starts blushing harder. "I-I-I can't b-believe that you h-have an erection right n-now!" She says surprized and confused.

"Oh? You don't believe it huh? Well...i'll have to prove it then!" You say, taking off all your clothes.

Your mom's eyes are fixed on your bulge as you pull down and take off your boxer shorts. As you do so, your rock hard cock springs out. Your mom's eyes widen, almost unable to stop looking at it.

"Oh my....." she gasps. "John..." She says in amazement.

"Oh you like it huh? It's 6 inches" You explain

Lily starts worrying as she can feel herself getting wet. "Lily! What's wrong with you? That's your son. You can't get turned on by his big dick...can you?" Lily says to herself in her mind.

"Now mom, I think it's time to play with you" You explain...