Bowie re-recorded "Baby Loves That Way" during the sessions for the
Toy project between July and October 2000, along with other tracks he wrote and recorded during the mid-1960s, including "You've Got a Habit of Leaving". The remake contains a slower tempo with a more subdued vocal. The lineup consisted of members of Bowie's then-touring band: guitarist
Earl Slick, bassist
Gail Ann Dorsey, pianist
Mike Garson, musician
Mark Plati and drummer
Sterling Campbell, along with instrumentalist
Lisa Germano on violin and backing vocalists
Holly Palmer and
Emm Gryner. Co-produced by Bowie and Plati, the band rehearsed the songs at Sear Sound Studios in New York City before recording them as live tracks. Plati stated that he refused to listen to Bowie's original recordings of the tracks, so to prevent the originals from influencing his playing on the new versions. Overdubs were recorded at New York's Looking Glass Studios.
Toy was initially intended for release in March 2001, before it was shelved by
EMI/
Virgin due to financial issues. So, Bowie departed the label and recorded his next album
Heathen (2002). The remake of "Baby Loves That Way" appeared on the Japanese release of the single "
Slow Burn", the two-disc deluxe edition of
Heathen and the UK and European release of the single "
Everyone Says 'Hi'". In March 2011, tracks from the
Toy sessions, including "Baby Loves That Way", were leaked online, attracting media attention. The leaked version lacked the opening drum roll and contained studio banter scattered throughout. Ten years later, on 29 September 2021,
Warner Music Group announced that
Toy would get an official release on 26 November as part of the box set
Brilliant Adventure (1992–2001) through ISO and
Parlophone. A separate deluxe edition, titled
Toy:Box, was released on 7 January 2022, which contains two new mixes of the song: an "alternate mix" and an "Unplugged and Somewhat Slightly Electric" mix, featuring new guitar parts by Plati and Slick. Reviewing
Toy,
Alexis Petridis of
The Guardian called the remake "a nice enough song that nevertheless betrays its inspiration –
Smokey Robinson's '
You Really Got a Hold On Me' – a little too obviously." ==Personnel==