Show the latest post from child category?

Just change your query to search for the category you want.

$qry = new WP_Query('category_name=paparazzi&showposts=1');
while($qry->have_posts()) : $qry->the_post();

That should most likely be all you need to do.

And please don’t use query_posts. It alters the main query and can break things.

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