Thanks for the reply.

I did inquire with my friend. 2 years After getting his ILR, He used form MN1 for the registration of his child as a British citizen who was born 6 months before his ILR. Once he registered, he applied for the British passport.

Form MN1 Guidance

Form MN1

alterhase58,

Could you please share any link or document which will .
few years ago, One of my friend did have a same condition and they did applied directly for the British for her daughter's Passport after getting ILR.
I am still looking to find a document to have a clear understanding.