Quoted from the "ISLAM REVEALED"
JESUS CHRIST ACCORDING TO ISLAM

A Miraculous Conception

 Islam recognizes Christ Jesus to be far more perfect and sinless than any human being ever has been or could be.  The Quran itself does not give to any of the prophets, not even to Muhammad, any of those special characteristics pertaining to Christ.
 'Isa  is the name given to Jesus in the Quran.  Both Christians and Muslims have wondered for centuries why He is not called Yesu' as the Gospels have it in Arabic.  Here is the reason.  Muhammad used the name "'Isa" in good faith after hearing it from the unbelieving Jews in Medina.  In their hatred, the Jews ridiculed Jesus by calling him Esau, the rejected brother of Jacob who lost the blessing.  They declared that the soul of Esau had been transformed into Jesus.  Muhammad picked up this name and put it in his Arabic tongue and applied it to Jesus without carrying with it the derogatory meaning given by the Jews.

 We read in the Surat al-Tahrim (Banning) 66:12,

Al Saddi's version of the miracle states the following: