Less commonly she male or she-male, n., pej.

Pornography industry and prostitution slang for pre-operative male to female transsexual. This refers specifically to a person who is biologically male with a female gender expression and has both breasts and a penis.

The term shemale is strictly slang and considered offensive by the people it refers to.

Origins uncertain. A related expression is chicks with dicks.

Sources:
Michael Alexander, http://ftmichael.tripod.com/

Nodeshell rescue