Figurative language is when people use words or phrases to communicate an idea not meant to be taken literally, such as speaking in metaphors. Sometimes, people do not realize the figurative nature and take them literally.
A more juvenile and fictional example of this is found in the book A Chocolate Moose for Dinner. In the book, a little girl is very confused when grown-ups use phrases such as "chocolate mousse for dinner last night" or "playing the piano by ear". The girl really believes that her mother ate a big chocolate moose for dinner, and that someone played the piano with their ear.
Is there a word or phrase for when someone misses the intended point because they took the figurative phrase literally?