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Sometime ago this very same information was stated on this page, and I deleted it.  I repeat what I said then: Stating that in most dialects, including the standard, /ʎ/ is pronounced [lj], like English  in ""million"" is simply wrong!
Just because olhos and óleos are pronounced the same, it does not mean that /ʎ/ has changed to /lj/; it may be that /lj/ was changed into /ʎ/.  In fact, that's my perception: the sound in óleos is /ʎ/, not /lj/.  The same holds for ""li"" in família.
I don't think I'm mistaken, but I will try to find the book the article cites."