They could have been hit by cars as they crossed busy Old Taupo Rd to get to the supermarket, she said.
"I take this matter very seriously. You were drunk and asleep and these two children were found 500m away. How lucky you are that they weren't killed," she said.
"It's a complete disgrace - you were so drunk you couldn't be woken."
Waiti was drinking at home on September 16 and fell asleep while he was supposed to be looking after the children. As he slept about 2.30pm, the two pre-schoolers walked about 500m from their home on Malfroy Rd to Old Taupo Rd, which they crossed.
Police were called as the pair played in the carpark.
When they arrived at Waiti's house, police found him sound asleep.
He told police he did not know the children had left the home.
Police left the children with Waiti and contacted Child, Youth and Family to raise concerns.
But when social workers arrived three hours later to check on the children, they had vanished again.
Waiti was difficult to wake as he was in a "drunken stupor" asleep on the lounge floor, the police summary of facts said.
When they did manage to wake him, Waiti smelled strongly of alcohol and had bloodshot eyes.
Both children were taken into care and now live with a foster family.
His lawyer, Gina Oudyn, told the court her client acknowledged he had been wrong, but he thought someone else was watching the children at the time.
"He had an uncle there who he thought was supervising the children."
Judge Munro fined Waiti $1000 and ordered him to pay $130 court costs.
"Clearly, you have enough money to buy alcohol," she said.
After the court case, Glenholme residents said they could not believe the pre-schoolers crossed the road safely alone.
Patricia Dale said she often found it difficult herself to cross Old Taupo Rd to get to the supermarket.
"It's a dangerous road. Cars zoom down here all the time. One car was doing about 100km/h the other day and went straight through the lights. It's shocking. Those kids are lucky to be here. I don't know how they did it," she said.
York St resident Diane Allen told The Daily Post she would not even let her older school children cross that road alone. "It's too damn unforgiving. Cars just zoom down here like it's a race track," she said.
"I can't believe two little kids got across that road.
"Someone was watching out for them, that's for sure."
Family First spokesman Bob McCoskrie said it was a dangerous situation.
"Not only were there road concerns with traffic young children can't deal with, but there could have been unsavoury characters around who could have picked them up.
"Or we could have potentially had another tragedy like we had in West Auckland recently with young Aisling, who drowned [after falling in a drain]," he said.
Mr McCoskrie said it was also of concern the father was so drunk.
"We have to get realistic here.
"We have to identify the risk factors and who our dysfunctional parents are so our children are not at risk," he said.
NZH