For the skeptics, Snopes says it's true:
http://www.snopes.com/photos/animals/cyclopes.asp
And I don't think it's too odd to keep a dead animal in the freezer (properly stored, of course). We've had autopsies done a couple of times for some of our animals that died under mysterious circumstances, and we had to store them that way until we could mail them to the nearest university with a vet school. Also, though it isn't quite related to this particular case, in a lot of climates, the ground is too hard at this time of year to dig a grave that's sufficiently secured against scavengers. There were several times, when we lived in the mountains, that we had to freeze dead animals until the ground thawed enough to be able to dig... and it often didn't thaw until April or May.
So yeah, it is an uncommon mutation, but it does really happen. At another site (which I won't link to, because some of the pictures are disturbing, but there's a link in the Snopes article if you have to see), I found a good explanation for those of you wondering why the kitten's eye was open.
Although kittens do not open their eyes for 2 weeks, Cy has no eyelids and cannot close the eye ... The eye is still moist, either from amniotic fluid or possibly from being moistened by the breeder (even normal kittens are sometimes born with open eyes). The bottow rim of the eye is incompletely fused. Although the head appears to be normal size, the eye is disproportionately large and occupies most of the central facial area - this is due to the abnormal growth of the facial structures associated with cyclopia. The internal structure of the eye is also defective: it lacks the pigmented iris that is blue in normal kittens; it has no blood vessels and no tapetum (the reflective layer that causes red-eye/green-eye in flash photography). The malformed brain means the eye is blind. The head is an abnormal shape with no muzzle and with the mouth presenting as a slit below the eyes.
During its short life, the kitten was syringe-fed and made comfortable by the owner. Following its death, the kitten's body was deep frozen in case it could be examined for research.
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But then again, mybe it's for the best. I've seen two headed animals before and my nan said she saw a tv programme that showed a lamb with five legs. Its fifth was in the middle of its underbelly. I never found out if it died or survived.
