Grandmother Shabina Begum, 54, and aunt Anum Parvaiz, 20, also died after the blaze ripped through a terraced house in Wake Road, Sharrow, shortly after midnight.
The boys were named locally as Amaan Nazim, seven, and his brother Adhyan Nazim, nine, who died in a bedroom with their nine-week-old sister, who has not been named.
Their father, Nazim Parvaiz, was out working as a taxi driver when the fire broke out and their mother, Razia Nazim, survived the blaze, and both are 'shell-shocked and devastated', their family said.
The grandmother had escaped the fire only to go back inside - but died trying to save her trapped family.
Distraught relatives have said the deaths are a 'tragedy beyond description' because 'within five minutes five precious lives were lost... and a whole family was destroyed'.
The cause of the fire is being investigated, South Yorkshire Fire and Rescue has said.
But a neighbour, who does not wish to be named, said she has friends who the fire through a window of the terraced property and called the fire brigade.
He said: 'It's just a huge tragedy. Words cannot describe how sad this is. It's a tragedy beyond description.
'The whole family is in a state of shock, devastated. The whole community is in a sombre mood.
'Friends, relatives, we're all in huge, huge shock. It's a tragedy beyond imagination.
'Just in a matter of minutes the whole family has been destroyed. The whole family has gone.
'You can well imagine what the children's parents are going through. I don't have the words to describe how the family is feeling, other than shell-shocked, devastated.
'We are a close-knit family, there are enough people around to support the family.
Mr Hussain Kayani said of his cousin, Mrs Begum: 'She was, to my children, like a mother, like an aunt.
'The whole community is in huge shock.'
Asked about the children, Mr Hussain Kayani said: 'They were full of life, quite bubbly, very energetic. They were looking forward to attending school (after Easter).'
He said the children's mother 'is in a state of shock. She's beyond consoling, really. I just hope and pray that they recover from this tragedy.'
Three generations of the family were killed in the fire.
Mr Hussain Kayani said: 'I believe the mother of the children, I think she was in the house.
'She managed to escape. The grandmother of the children, she made attempts to rescue the children but obviously it wasn't to be.
'She came out then went back in, tried her level best. Frantic attempts were made to rescue the children.'
Qurban Hussain, Labour councillor for Sharrow, said: 'I have known the family for the last 40 years. They were a very kind, loving and peaceful family.
'I came down last night when I heard about what had happened. When I saw the fire, I didn't think anyone would have survived.
'The smoke alarms were going off and the neighbour heard them and called the fire brigade. The neighbour was banging on the door, shouting, and that seemed to wake the family up.
'The grandmother came running out of the house, but when she realised the children were still inside she went back in to try and get them out.
'The children's father and grandfather are both taxi drivers and they were both out working at the time. They are very hard working and they're always out earning money for their family.
'They weren't there so they couldn't do anything to help.
'It is such terrible news. They were such a peaceful, loving family and they were very kind people. They didn't interfere with anyone else and they were very nice and loving.'
Four fire engines were called to the scene and an aerial ladder was also used to tackle the blaze.
Police and ambulance services also rushed to the house after receiving emergency calls.
The road, lined with cars on each side, was cordoned off by police tape this morning.
Four fire engines were called to the scene and an aerial ladder was also used to tackle the blaze at Sharrow, in Sheffield
Phil Shillito, South Yorkshire Fire and Rescue area manager, said 25 firefighters were sent to tackle the blaze.
'This is a tragic reminder of the devastating effects of fire and our thoughts are with the families of those involved in this incident,' he said.
'I can confirm that around 25 firefighters and four appliances attended a very challenging incident last night and worked hard to recover and rescue five casualties from the premise. Unfortunately, they didn't survive and we're now working with the police to investigate the cause of fire.
'They were faced with a very challenging fire, lots of flames coming out of the property, and they were aware family members were in the premise and they went in wearing breathing apparatus enabling them to breathe in the hot and smoky environment.
'Unfortunately they did find five casualties in the property'.
-Dailymail
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