Angel and the gang return to the hotel to find Cordelia dressed in white with no memory of who they are or who she was. She's a bit freaked out at first, so Angel decides not to tell her about his vampire nature and what they do for a living. Even after she's beats up some of Wolfram & Hart's goonies, Angel still kind of smoothes over the truth. The little clues around the hotel (such as all the weapons and answering machine messages that talk about demon babies) make it hard to keep it a secret. When Angel accidentally vamps out from touching a cross and Lorne makes an appearance, they decide to tell her the whole truth.
Cordelia is less than thrilled to be aware of that kind of world she lives in. She still a bit freaked out and angry at the group for lying to her. They decide to let her sing and have Lorne read her future. She does and he wigs out and leaves the room. Angel follows him, and Lorne says he saw very bad, apocalyptic visions.
Cordelia is ticked off about Angel and Lorne leaving so quickly without telling her what happened, so she heads out to find them. When one of Lorne's clients decides to eat her for a snack, Connor (who has been spying on her since her return) comes to her rescue. She asks him to get her out of there, so he takes her to his place. While there, they talk and he straight up tells her why he isn't living with Angel and that he even tried to kill her before. She thanks him for being so honest, unlike the others, and instinctively trusts him.
Angel and the gang freak out because they can't find Cordelia. Wesley arrives at their doorstep and says that Wolfran & Hart are planning to capture her and Connor. Sure enough, a team breaks into Connor's place and fighting ensues. Angel, Gunn and Fred arrive in time to help out, and the team flees. When they ask Cordelia to come back, she refuses and says she wants to stay with Connor.
When Angel and the gang return to the hotel, they find Lorne tied up. It turns out that the attack on Connor's place was just a diversion so they could get to Lorne and find out what he saw when he read Cordelia. Gunn suspects Wesley set them up on purpose.
THE ONGOING WESLEY AND LILAH SAGA:
While in bed together, Lilah tells Wesley that both Wolfram & Hart and Angel know about them. He says he doesn't care that Angel knows about their relationship. She gleefully tells him that he owes her a dollar for being the first one to call their couplings a relationship. He signs a dollar and gives it to her.
Later, she receives a call about Cordelia's whereabouts. Wesley overhears her planning an attack. This is the information he provides to Angel and the gang later, thinking he is helping them out.
However, he afterwards realizes that Lilah fed him the information on purpose. He is angry with her, but she reminds him that he didn't have to tell anyone what he heard. He asks if she expects him to trust her again and she says that if she thought he could ever really trust her, she wouldn't have played him like that to begin with. Wesley understands and mentions that it is never simple.