At the restaurant, everyone wants to know what is the big surprise, except for Niles, who is a no-show. Frasier warned he'd cancel because Niles as a child once got nervous and threw up on Stefano, the fiery owner of the restaurant, and now Niles is afraid to return. Finally, Frasier gives in and tells everyone that the surprise is a caricature of himself that will be hung on the wall with all the other Seattle celebrities. Stefano comes over to the table, and the caricature is unveiled after Frasier delivers a speech. Everyone loves it except for Frasier, who is secretly horrified by it.
The whole way home, Frasier obsesses about how the artist made his forehead so enormous. Martin tells him to let it go, but of course Frasier can't. Niles joins them at Frasier's place and teases him about the huge head, even though he hasn't seen it yet. Niles and Daphne are sitting on the sofa, and Niles compliments her on her eyes. Daphne is flustered, and ends up leaving, saying she needs to go buy Frasier some oat bran to help lower his cholesterol. Niles reminds Frasier that they have a reservation at a French restaurant that he booked over a month ago, but after Niles leaves, Frasier makes another reservation at Stefano's restaurant that evening.
A nervous Niles joins Frasier at the Italian restaurant, and concludes that Frasier is insane to obsess about his caricature so much. When Stefano overhears them talking about the picture, Frasier admits that the forehead is too big and wonders if he could alter it. Stefano later brings another picture which Frasier likes, but which looks nothing like him, according to Niles. When Kenny comes over later and sees it, he thinks it is James Garner. So when Stefano sits down in the booth next to a terrified and very full Niles, trying to place where he knows him, Frasier takes the opportunity to sneak away to Roz's place, where he knows she has hired an artist for Alice's birthday party to do caricatures for the kids.
Butting in line at the party, Frasier gets the artist to do several sketches of him. He takes them back with him to the restaurant, where Stefano has been trying to figure out for 40 minutes who Niles is, guessing anything from a valet parking attendant to sharing a box at the dog track with him. Frasier shows Niles the new pictures of himself, and says that he plans to make the caricature of him "accidentally fall off the wall." While they're looking at them, an older woman comes over and observes them over Frasier's shoulder. She becomes visibly upset, saying something in Italian. Stefano rushes over, demanding to know what's going on. Frasier admits he doesn't like either of the sketches that were done of him, and shows them the ones he has had made. He goes on to criticize the incompetency of the hack who has been sketching for Stefano, forcing the woman to burst into tears. Frasier realizes too late that the "hack" is the woman - Stefano's mother. Stefano orders Frasier out of his restaurant, and when Niles gets up to go, Stefano says he now remembers him. Nervously, Niles looks around and when Stefano places him as a guy in Connecticut who once helped rescue him from a flat, Niles pretends that it is so. Stefano kisses him on both cheeks and gives him a bear hug, which does not sit well with the overly stuffed Niles.
Frasier tells Martin that none of the Cranes are welcome at Stefano's restaurant now, and Niles confesses to having vomited in the lobster tank. Martin gives Frasier his own analysis - that he believes Frasier obsessed over the caricature because so many other things that were negative in his life - relationships, ratings, etc. - were out of his control. Frasier agrees, and they discuss how a minor thing can distract someone from a major issue on his or her mind.. Shortly after, Daphne walks in. Martin hadn't seen her since earlier that day, and much to his and Frasier's shock, she has been gone for eight hours trying to find Frasier's oat bran cereal - which she ended up driving to Portland, Oregon to buy.
The final scene as the credits roll depict Frasier and Daphne sitting at the breakfast table, Frasier with his bowl of oat bran and Daphne with a full meal. Frasier distracts Daphne by getting her to look the other way, then he pulls some bacon off her plate and quickly eats it.