"Lynn is the second eldest grandchild and she's a great girl. She's a very level-head on her shoulders and she's well able to hold her own," she said.
"I had a gut feeling that she would do well all along -- she never sought out this industry but when the opportunity came up, she grabbed it with two hands and I knew she would go far."
She added that Lynn has proved herself to be made of stern stuff as she was by her side as she fought her eight-year battle with breast cancer.
The kind-hearted beauty queen who name-checked her grandmother as her biggest inspiration, even moved into Anne's home in Jervis Street to help her out during her illness.
"I had breast cancer for eight long, hard years and Lynn was one of my biggest supporters.
"I was diagnosed in 1998 and I didn't get the all-clear until 2006," she explained.
"It was a tough battle and Lynn was a great help to me over the years."
Now enjoying her second year after getting the all-clear, Anne -- along with a group of Lynn's friends and family -- was on hand in City West on Sunday night to witness Lynn's nail-biting win.
"I said to her before the contest that I would be so proud of her if she got through to the final 10 -- never mind the final five!"
"When it got down to the final three and she was still in it, I couldn't even watch it.
"I have no idea who the other two girls are, because my head was in my hands the whole time until they announced Lynn's name!"
She says that the Kelly party will be heading over to Vietnam to cheer on Lynn in the Miss Universe final.
"I'm definitely going over.
"I think we'll head over for the last 10 days or so, because she's going to be there for five weeks."
While the competition will be fierce as the selection of beauties battle it out for the final place in the spotlight, Anne says that she is putting her money on Lynn to do Ireland proud.
"She's well able to hold her own, without being cocky in any way. She used to debate a lot when she was younger and she's an accomplished Irish dancer as well."