Basically, they add meat onto the end of the woman's clitoris so that it looks somewhat like a dick (if you squint a lot and use your imagination), but it will never function like a dick (no testicles, no connection to kidneys via urethra, etc.).

It's the same way that all the hormone injections in the world won't change the scientific fact that all the trannies still have male XY chromosomes in every cell's DNA.