The Penguin opens an exclusive restaurant, The Penguin's Nest, which caters to Gothamite's richest citizens. By a clever ruse he and his henchmen Cordy Blue, Maty Dee, and Chickadee collects handwriting samples from his very exclusive guests. Upon his inevitable return to Prison (the foul fowl has been imprisoned so many times he has been assigned a permanent cell!), he plans to use these samples, in collaboration with the famous forger Ballpoint Baxter, to forge checks against the millionaires' accounts, which Penguin will cash immediately upon his release. However, Baxter is in prison, so The Penguin somehow has to get himself arrested...something which, unfortunately for him, he just can't seem to do! First he attempts to snatch a piece of jewelry from Aunt Harriet, who was dining at the restaurant, but Batman and Robin later intercede and allow the wayward wallower to go free, despite his attacking Chief O'Hara with a pie in the face.

Since Penguin is obviously eager to return to jail, The Caped Crusader suspects he has something sunister up his sinewly sleeve and decides to check his prison cell assignment. Thus he and The Boy Wonder divine his scheme and decides to yet again let Penguin off the hook, in hopes he will carelessly tip his hand. Later, The Penguin executes another attempt to be apprehended by staging the fake murder of one of his own henchmen and Batman & Robin, who have been watching him like hawks, haul him away...but to the meager City Jail and not the State Prison (where Baxter is). The Dynamic Duo unravel The Penguin's plan, but not before Cordy Blue, Maty Dee, and Chickadee springs him from jail. In the process they also kidnap Chief O'Hara and hold him hostage. Penguin locks the chief in a steamer trunk suspended on a water slide over a pool of water. The Penguin lures Batman and Robin to his lair, but they arrive just as the trunk splashes into the water. As The Penguin prepares to throw a switch that will electrify the pool, his gang members level their machine guns at our hapless heroes...