This woke me up. I wonder how the PC police are going to handle this one.
The term mulatto (mulato in Portuguese) does not carry a racist connotation and is used along with other terms like moreno, light-moreno and dark-moreno. These focus more on the skin color than on the ethnicity, although they can refer to hair color alone - e.g. "light-moreno" would be "caucasian brunette". Such terms are also used for other multiracial people in Brazil, and they are the popular terms for the pardo skin color used on the 2000 official census.