This is a very rare 19th century Meissen porcelain ocarina, hand painted with blue floral motifs.  A similar instrument can be found featured in Ocarina: A Pictorial History.  It would have originally had a wooden tuning slide in the hole at the mouthpiece end that is now missing.  It plays fine without the tuning slide, albeit at a higher pitch than it would have.  It has the Meissen logo (pictured).  I have not seen another of these listed on Ebay for many years.