New KACL station manager Kate Costas (Mercedes Ruehl) has a reputation for being a fearsome perfectionist, and inspiring fear in her subordinates.
Meanwhile, Daphne reveals that Martin has a collection of songs in a shoebox which he wrote years ago for Frank Sinatra, always dreaming that one day he may open a concert with them.
Frasier decides to retaliate by hiding a lizard in Bulldog’s raffle box, only to watch in horror as Kate becomes his unintended victim.
Needing to repair a dent in his floor quickly, he employs Niles's handyman Joe DeCarlo (Tony Carreiro) to fix it.
Joe tells him he will be done by midday, but when Frasier returns home a few hours later, he finds his apartment in a state of disarray with holes in his walls and workmen everywhere.
The discussion grows to a fierce argument, which escalates into intense mutual lust, whereupon they kiss passionately before Kate throws Frasier out.
Frasier and Kate have a moment of passion in the studio, in which "Bad Boy" and "Dirty Girl" accidentally broadcast their tryst to all of Seattle.
She comes round to his apartment later to apologize, and they both end up trapped in a service lift with a bed, a music box and some musk oil.
So he plans to take an heiress to the upcoming “Snow Ball,” for which Daphne offers to give him ballroom dancing lessons.
Diane Chambers (Shelley Long) shows up at KACL to invite Frasier to the Seattle performance of her new play.
Frasier, still invites her to dinner, determined to flaunt his success and convince her he is over her, despite Niles' insistence he confront her about her leaving him at the altar.
So Roz tells Niles about an acquaintance named Jerome Belasco (Harris Yulin), who "makes wishes come true".
Frasier feels he is alone in upholding common courtesy, and loses his patience in a crowded Café Nervosa, forcibly ejecting a man who claimed a table just before him.
Niles is retained to testify in a high-profile legal action to be broadcast on Court TV; local millionaire Harlow Safford (Donald O'Connor) is, at age 78, apparently showing signs of senility, so his son is trying to get him committed.
Frasier is persuaded by Safford that his eccentricities are merely his effort to embrace life and make the most of his health while he still can, and give something back to the world that has been kind to him.
Later that day, Frasier overhears Daphne on the phone with her mother, calling him a tyrant who will not allow her a trip to England, in an effort to avoid a visit.
Frasier later plays the tape of his first show, and his awkward, shaking voice reminds him of his early days back in Seattle.