No, Elahn doesn't have milk on his knees. His knees have a slight medial deviation ("knock" knees). This is not uncommon in nursing lama babies. The show people (as well as those breeders who sell at weaning, while the "cute" factor is at maximum and production costs are lowest) get really bent out of shape about milk knees, but unless the baby receives poor nutrition after weaning, it gradually resolves.

Elahn's sire Credo also had "milk knees", as have several other babies sired by Elahn's paternal grandsire Sky Rocket. Credo outgrew his by age 2.5 years, and so that's about what I'm expecting Elahn will do.

It would be nice if Elahn's legs were pretty always, but bottom line is that it isn't an issue for the long haul. Babies born that way, or seriously crooked by this time — that would be different (although a huge number of other defects will ruin a llama's quality of life and/or stop it from packing long before knock knees will).