He ran back towards the smoking house but did not get far as windows exploded before him.
"That's when I started to panic."
Mr Cooney and his great-granddaughter Sarah sat on the footpath nearby as they and their neighbours watched the Greerton firefighters dampen down the smouldering home.
"I've got my wallet and my money but I don't care about that, so long as this little one was out and we're safe," he said.
Sarah held on to him tight with tears in her eyes and said "that was my favourite house".
A nearby neighbour brought Mr Cooney a thick, mink blanket which she wrapped around him and gave Sarah a brand new barbie doll.
Neighbour Josie Morris said the fire happened "so fast".
"I closed up my windows thinking the neighbours were burning rubbish and then next thing we looked out and the windows exploded."
Mr Cooney said he was cooking chops on the stove before he was called outside.
Greerton station officer Steve Wright said about 90 per cent of the house had been destroyed.
"I don't think there's going to be a lot to save," Mr Wright said.
"When we arrived flames were coming out the front of the house and it was a fully involved house fire."
Mr Wright said the cause of the fire was yet to be determined but that it began in the kitchen.
He stressed the importance of never leaving cooking unattended.