The Queen has become the first monarch since the 18th century to attend Cabinet on a special visit to mark her Diamond Jubilee.
The monarch was met by Prime Minister David Cameron on the steps of Number 10, which had been covered with a red carpet for the occasion.
She wore a deep blue coat and matching dress by Stuart Parvin - immediately dubbed "Thatcheresque" by commentators.
The Queen made the trip without Prince Philip to collect a present bought by the Secretaries of State to mark her 60-year reign.
Cabinet members clubbed together to buy her a set of 60 placemats - one for each year she has spent on the throne.
The mats, which are bespoke and show traditional images of Buckingham Palace, were suggested by the Queen's own aides and made by a Gloucestershire company called Lady Clare Limited.
Officials refused to disclose the value of the gifts. An unspecified donation was also made to the her Diamond Jubilee Trust.
Mr Cameron met the Queen outside Number 10Ministers lined up to shake hands with the monarch before they all went into the final Cabinet of the year.
The Queen took her chance during the meet-and-greet to quiz George Osborne about Britain's gold reserves.
She then sat between Mr Cameron and Foreign Secretary William Hague for her half-hour stint at the famous Cabinet table.
The Queen is thought to be the first monarch to attend Cabinet since George III in 1781, despite earlier claims Queen Victoria did so.
She only stayed for the first section before leaving ministers to their discussions and moving on to the Foreign Office.
During the meeting, Mr Cameron offered her a "very warm welcome" and congratulated her "on a fantastic jubilee year".
He said Downing Street had researched the last monarch to visit Cabinet and believe it dates back to the 18th century.
Some of the 60 placemats given to the QueenGeorge VI, the Queen's father, met Cabinet during World War II, but apparently did not go to the standard meeting.
"We think the last time a monarch came to the Cabinet was in 1781, during the American War of Independence, but I'm happy to report that relations have improved slightly since then," Mr Cameron said.
The Queen joked "gently and humorously" that the Cabinet could make the next Queen's Speech on "the shorter rather than the longer side".
The only other moment she spoke was to wish ministers "happy Christmas" as she left.
Ministers described the visit as "a great honour" but constitutional experts warned that it blurred the boundaries between government and monarchy.
Sky's royal commentator Alastair Bruce said: "It is significant because in the Queen's Diamond Jubilee year it puts a focus on what headship of the state is all about and that is supervising the democratic process."
The Foreign Office later announced that the southern part of British Antarctic Territory is to be named "Queen Elizabeth Land" to mark the jubilee.
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