IT WAS a clothes call – but in the end, Chloe Dao (left) had victory sewn up. The diminutive designer and entrepreneur from Houston withstood stiff competition to emerge last night as the winner of Season 2 of Bravo’s fashion reality show “Project Runway.”

The judges kept the three finalists on pins and needles until the show’s final moments just before 11 p.m.

“Chloe, you understand women. Your clothes were memorable and we know that you have great business sense,” said host/judge Heidi Klum. “Chloe, congratulations – you are the winner!”

The announcement had Dao in stitches. “Are you kidding me?” she asked. “No way!”

She then received a hug from runner-up Daniel Vosovic, 24, a fan favorite whom many had picked to win. In addition to the title, Dao won $100,000 to invest in her business and a new car, a 2007 Saturn SkyRoadster.

Vosovic, a Michigan native who lives in New York after recently graduating from the Fashion Institute of Technology, vowed he would return someday to the main tent in Bryant Park, site of the spring fashion show where the finalists showed their collections last month.

Judge Michael Kors then invited Vosovic to call him for a job at his design company.

Kors spoke for all the judges – including Nina Garcia, fashion director for Elle magazine, and Debra Messing, star of NBC’s “Will & Grace” – when he said to Vosovic, “We had a very tough time with this.”

Indeed, before the winner was announced, the judges were seen on the show struggling to choose among Dao, Vosovic and the other finalist, Santino Rice, 30, of Los Angeles.

Dao said the win validated her as a fashion designer, although she’s been designing sportswear for a while. Dao, 33, was born in Laos, but emigrated to the United States when she was a child. She owns a Houston boutique.

“I’m excited that I won. I’m the winner of ‘Project Runway’. I am a real designer!” Dao declared.