Lila begins to have second thoughts about hiding the truth from Shane, who asks for his latest test results from Dr. Baxley. At the police station, Felicia accuses Grant of breaking and entering the Nikos penthouse. Overcome by fumes from the oven, Paulina collapses on the floor of Carlino's kitchen. After smelling the gas from the door, Jake rushes in and revives his friend, then hurries her to the emergency room. Alexander arranges for new living quarters in Bay City and instructs his operatives to ensure that the place was completely hidden from prying eyes. Though Lila suggests that they make the most of the time he has left, Shane gently reminds her that he doesn't want to repeat mistakes from the past. Later, certain she'll lose Shane to Vicky, Lila decides to remain silent about her ex-husband's miracle cure. Anxious to propose to Sofia, Nick seeks some advice from Josie. At the hospital, a tearful Paulina thanks Jake for saving her life. After Joe arrives, Paulina confesses that she forgot to light the pilot on the stove because she mixed a decongestant with several glasses of wine. Jake warns Grant to accept the fact that he will never gain custody of Kirkland. Recalling how Sofia conceived a plot idea for a new romance novel, Felicia gives Nick the framework for a perfect marriage proposal. Grant icily informs Alexander that instead of following orders he's now calling the shots. Lila asks Shane to move in with her. Nick's romantic plan went awry when he's suddenly arrested.
When Toni arrives to work in the morning she can't believe Nick was behind bars. She asks if this was some kind of joke. Nick tells her there was a misunderstanding. Toni tries to release Nick but notices he was also suspected of a robbery. Apparently there was a robbery of antique jewelry a few nights ago and Nick was carrying a piece of antique jewelry. Nick explained the ring he had was his grandmother's and he had it because he was going to propose to Sofia. Toni thought the whole thing was so romantic. Since she didn't have the authority to release Nick Toni called Josie. Toni let Nick out of the cell and him wait in the interrogation room. Before releasing him Josie told Nick to forget the props and propose to Sofia with whatever his heart told him to do. This was sure to melt Sofia's heart. Nick has an idea and asks Felicia for some help to pull it off. Meanwhile Sofia was concerned about Nick. It's not like him not to show up and not call. Of course Tomas tries to bad mouth Nick and reminds Sofia of all the times Nick let her down in the past. Sofia doesn't want to hear it. When Tomas insists Nick could of at least called Sofia. She picks up the phone to call Nick and notices the phone line was dead. She went to the window and notices repair men outside. Sofia told Tomas she needs help to find Nick. Tomas went out and when he returned he told Sofia Nick was arrested. Sofia refuses to believe the worst and heads to the precinct. Nick was finally released and calls Sofia's apartment. Tomas told him Sofia was on her way to the police station. Nick did not want Sofia to know about his arrest for fear of hurting her again. He doesn't know what to do.
Gary wakes up from a nightmare about Josie being killed in the line of duty to find Josie and Rain happily wrapping Christmas gifts. The dream scared Gary but he does not tell his wife about it. The three of them cheerfully talk about Christmas shopping when Josie receives a call to go to work. Gary was not pleased Josie will be bringing Rain to the police station; but, Josie insists it will be for a few minutes and then they'll go shopping. Gary meets up with Felicia and talks to her about his fears. He and Josie have risky jobs and he was concerned for Rain. Felicia tries to reassure her friend. Gary and Felicia also talk about Alexander. Felicia admits he was an addiction for her; but, she was handling it. Gary advises his friend to keep her eyes open and beware. When Gary comes home he finds Josie wrapping his Christmas present. Joie notices his lack of enthusiasm and asks what's wrong. Gary told her he was not sure they are up to the job of being Rain's parents.
At the Cory mansion Carl, Joe, Gary and Matt are in a strategy meeting trying to figure out Alexander's next move. Matt reports Zoë was last seen in Rome a week ago and has since dropped off the face of the earth. Carl was convinced Nikos has plans for his daughter. The men believe Grant was somehow connected to Alexander but have no way to prove it. Matt suggests he become a double agent. He will go to Grant and ask him to relay a message to Nikos. Grant will tell Alexander Matt needs help to take Carl down. Grant and Nikos will believe Matt because they know he hates Carl. When Carl and Matt are alone Carl expresses concern for Matt's safety. Matt inquires about the concern and Carl told Matt Rachel loves him dearly and it would pain her to find out her son was in danger and to that end Carl wants Matt to stay safe. The two men seem to come to a truce. Matt leaves to see Grant.
Cindy was ready to go shopping and visit Paulina in the hospital when Grant notices she was not wearing the pin he gave her. Se tells him it does not go with the outfit she was wearing. He insists she wear it since it was a gift he gave her from his heart and when she wears it he feels as though are connected. Cindy was touched and agrees to wear it (she has no idea it was a bug!) On her way out of the hospital after visiting Paulina Cindy runs into Joe who told her to be weary of Grant. Cindy, not knowing Grant was listening to every word, sings her husband's praises. Grant was thrilled but there was a knock at the door. He hastily throws the device in the bedroom. Grant opens the door and Matt walks in. Matt told Grant to pass a messages along to Nikos that Matt needs his help in destroying Carl. Grant insists he has nothing to do with Nikos. Cindy walks in and greets the men. She notices she interrupted something so she takes off her coat and went into the bedroom. She hears the men talking through what seems to be a speaker. When she finds the listening device she realizes Grant had her bugged. (Watch out Grant!)
Nick gets help from Felicia and Toni after the mix-up at the police station. He gives Felicia a note for Sophia and they wish him good luck. Sophia arrives trying to find Nick and admits to Felicia that she has to end things if he's in jail again. Felicia explains the mix-up and how Nick was just trying to create a romantic fantasy for her. Felicia gently told her that Nick doesn't feel good enough for Sophia and she should do something about that. Sophia realizes how wrong she was and went to meet Nick. They meet up on the bluff where they dance to an old song. Sophia makes Nick get down on his knees and "knights" him Sir Nicholas, knight of her heart. Nick proposes and she happily accepts. Shane went to Tyrone's office about writing his will. Shane insists it needs to be done quickly and leaves a majority of his estate to Lila, with his boat going to Steven and Kirkland. When Shane says that Tyrone needs to give Vicky a note immediately after his death, Tyrone cautions him about leaving secrets behind to haunt loved ones. Tyrone tries unsuccessfully to find Artie Willis's death certificate. Vicky and Jake enjoy some hot chocolate and Vicky speculates about what Jake and Lila talked about. Jake has second thoughts about keeping Lila's secret about Shane's illness from Vicky and he leaves quickly to find her. Lila agonizes about whether to tell Shane the truth about the fake lab results but she realizes he would hate her and go back to Vicky. When Jake comes by, Lila plants doubts in his mind about how Vicky will go running back to Shane. When Shane comes by Lila says she wants to have a baby with him. Vicky gets exciting news from Donna about the Rolling Stones coming to surprise Jake on Christmas morning. Meanwhile, Jake makes plans to leave the country on Christmas morning to keep Vicky from finding out about Shane.
Outraged to learn that her husband has been spying on her, Cindy vows to pay Grant back. Lila explains to Shane how much it would mean to her to have a small piece of him live on in a child they've created together. Cindy returns all the lavish presents she bought for Grant, then cancels the plane tickets to Paris. Shane reminds Lila how unfair it would be to force an innocent child to become a living memorial to his or her dead father. In need of an ally in his battle for custody of Kirkland, Grant threatens to blackmail Lila unless she lends him some special assistance. Etta Mae was rattled when Toni pulls out an old receiving blanket she found in storage. Meanwhile, Tyrone digs deeper for the truth about his parentage. Lila refuses to help Grant pry Kirkland out of his mother's arms. Vicky decides to ignore Jake's warnings and heads to Lila's place to demand some answers. Surprised to find Shane writhing in pain on the floor, Vicky tries to help but Lila returns and quickly takes charge. Tyrone appeals to Etta Mae to shed some light on Artie's relationship with"Satin". Alexander asks an unusual favor of Grant. Tyrone was stunned when King comes by the Burrell house and calls Etta Mae "Satin".
Though Etta Mae nervously denies that anyone ever called her "Satin", King insists he recognizes Artie's favorite lady from their days at the Blue Parrot. Jake and Vicky hurry to struggle into their clothes when Donna and Cass arrive with the kids ahead of schedule. Lila talks fast to prevent Shane from calling Dr. Baxley for his latest test results. Michael was taken aback to learn that Donna has begun dating Cass. Grant assures a suspicious Cindy his interest in Lila was strictly professional. After discovering an electronic bug hidden in the living room, Grant speculates that Joe planted the listening device in hopes that the mayor would lead him to Nikos. Meanwhile, Cindy secretly slips the dragonfly pin into the pocket of her husband's jacket in order to keep tabs on Grant's interactions with Lila and the Carlinos. Etta Mae again declares that King has confused her with Irene but Tyrone pressures her to admit that she was his father's lover. As Cindy listens in, Grant orders a fuming Lila to forge another letter from Vicky to Shane. While Jake entertains their guests with a story from the North Pole, Vicky decides to speed up dinner by sticking the slow-cooking turkey into the microwave but ends up nuking it into charcoal instead. Tyrone suddenly realizes that Etta Mae must be his real mother. Grant leaves a surprise package on Vicky's porch. Lila pens another phony love letter.