Joni Mitchell -- Condition Improving ... Full Recovery Expected

Joni Mitchell's prognosis isn't as dark as it's been reported -- the folk music legend's attorney says she's making amazing progress since an aneurysm ... and the words "full recovery" have been used.

According to court documents, an attorney appointed to Mitchell's conservatorship case visited the legendary singer/songwriter on June 26 at her home.

The attorney, Rebecca Thyne, said Mitchell was feeding herself lunch when Thyne arrived and they talked about the care she was receiving from long-time friend, Leslie Morris. In the docs, Thyne says Mitchell said she wants Morris to continue as her conservator.

Thyne's encounter is interesting ... multiple reports, including one account last month from Joni's friend David Crosby, claimed she was not able to speak.

Thyne concluded, Joni was making "remarkable progress" -- and added she's "expected to make a full recovery."

Mitchell was hospitalized on March 31 after being found unconscious in her home after suffering an aneurysm.