Yep, just drag any image from any where in your mac, into the iphone sim screen. that'll open up the safari inside the simulator. then you click and hold on the image, a actionsheet will pop up and select Save Image. you're done.
for me, i always backup the images, which is under ~/Library/Application Support/iPhone Simulator/User/Media/DCIM/100APPLE to another folder. So when I do a Reset Settings for iphone sim, i then just copy it back to that place.
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