aphne is unsure how to deal with Niles's feelings for her. Roz assures her there's nothing to worry about: Niles has a girlfriend now, and she's engaged to Donny. However, Niles has a meeting with Maris to console her over the loss of a friend, a meeting that he keeps secret from Mel. Frasier lets slip the secret, and Mel angrily breaks up with Niles, making Daphne very nervous. Frasier's Christmas party competes with one thrown by his rival neighbor, Cam Winston.

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