The daughter of one's stepbrother or stepsister(noun)
The stepdaughter of one's sibling(noun)
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Use "stepniece" in a sentence
"I believe my stepniece is a student there, but I can't reach anyone for news and I don't want to call her mother for fear of unnecessarily upsetting or worrying her."
"Through Augusta I have got acquainted with Lottie Gardner, a kind of stepniece to the doctor, and excessively aristocratic."
"Francis Beaufort was a weird type who married his own stepniece."