When Thaddeus first approaches Paladin, he looks carefully about to make sure that Lydia is not present. Yet Lydia, later in the episode, makes it clear that she saw Paladin having his cigar lighted by his lady of the moment (as well as pouring him a drink, which we don't see).
Lydian: Thaddeus! I warned you against talking to strangers. (To Paladin) And you? I know your type. A gambler, likely. Fancy clothes and a trick up both sleeves. Just waiting for some poor simpleton like this to walk in.
Thaddeus: No, ma'am, all we was doin'--
Lydia: Lucifer written all over his face! Or maybe that's what attracted you. In a town full of sin, who makes a better guide than a sinner?
Thaddeus: (sotto voce) Ya see?
Thaddeus: Ain't no man so big that a length of kindling won't cut him down to size.
Paladin: Did it ever occur to you that a length of kindling might work just as well on her as it does on her brother?
Thaddeus: Oh, a, a, a man just can't do that with a woman.
Paladin: A theory that will probably result in their being the last thing civilized by man. When Milton declared that "Heaven's best gift is a woman perfected", he forgot to mention what a hellish job it is perfecting one of them. I think perhaps Homer described her better: "a creature with a form of a goddess, the walk of a queen, and the heart of a tyrant."
Lydia: (slamming a plate down) Maybe you'd prefer to go out and eat with the hogs!
Paladin: Miss Moss, don't apologize to me for your cooking. I'm sure the overseasoning was just a mistake.
Lydia: Overwhat? (To Thaddeus) Why we've had your cowboy friends ride three days to eat at this table!
Paladin: It is amazing how cowboys and ranch hands develop a fondness for that peculiar flavor of chuckwagon cooking, y'know very few kitchens can reproduce it.
Lydia: I notice you ain't stood short at the biscuits!
Paladin: Madam, the fact that a chicken can lay a perfect egg does not entitle her to crow like a rooster.
Thaddeus: We had an agreement!
Paladin: Well, I am living up to my part of it!
Thaddeus: You've done nothing but throw the whole darn thing right back in my lap!
Paladin: A man can be hired to do anything in this world for another man but make a decision for him!
Thaddeus: Listen, Paladin, if you want your thousand dollars, you get in there and make it so clear to her that she'll never come back! Tell her that I don't want her around. I don't want to marry her, I don't want to see her ugly face or hear her screeching, or her nag--
Lydia: That won't be necessary, Mr. Taylor. I'll leave as quick as Clyde can arrange me a place to go. Till then...till then, I'll be happy to keep my nagging, ugly face out of your sight.
Paladin: (touching Lydia's tight braids) Now, how in the world does a woman get her hair into this condition? What do you do, starch and iron it?
Lydia: (after jollying her brother out of his bad temper) It works. Even with him. Why, you're all like children, aren't you? It's not only bad, it's foolish to use a whip on a child.
Thaddeus: (handing Paladin a wad of cash) And I think I'm being pretty decent, considering as how I worked things out for myself.
Paladin: (taking money) Well, I think your fiancée might agree that this money was fairly earned.
Lydia: Maybe you should have just stayed in San Francisco, and not butted in at all.
Paladin: That kind of remark calls for a very special kind of an answer, and I wish I could think of it.
Lydia: Thaddeus. If you're gonna track mud in, you're gonna sweep it out, too...dear.
Paladin: Hmm. Now I feel better. "Whom God has joined together, let no man put asunder." Thaddeus. (makes his exit)
Paladin: Lesson number one. Never touch a man in desperation, in anger, or in fear. A real woman, a proper female kind of woman, tries to perpetuate the legend that her touch is as rare as a fine jewel. That it's given only to a very special person at a very special moment.
Lydia: That doesn't make sense. It's not even practical.
Paladin: Lesson number two. Forget all about logic.
Lydia: I told you I don't know how to fix hair! Look at me! And it's all your fault!
Paladin: You're beginning to talk like a woman now. Blame it all on a man. I grade you one hundred percent on that.
Lydia: I hate you.
Paladin: That was also the correct answer and your brows are still a mess.
Paladin: It seems to me if you pile it higher, it'll make your face seem more slender.
Lydia: I don't have a slender face. Do I have to be a liar to be a woman?
Paladin: You'll know when the moment for honesty comes, and it'll make truth out of every illusion you've created.