Walter looks at her sympathetically and says, "You're a lot like her, you know? The other Olivia. She has trouble sleeping when there's an open case." Fauxlivia explains that it's not the case, but the evidence from Lincoln's murder. She tells Walter that she's looking for a mole, which somehow morphs into an explanation about how she doesn't normally drink, but her ex, Frank, left this bottle here when he moved out. But of pretty much anyone on this show, Walter is the last person you'd have to apologize to when it comes to substance abuse.
Things get a little maudlin as Fauxlivia waves her hand over all of Lincoln Bee's remaining belongings from Fringe Division. She's supposed to give them to his parents, but she hasn't had the courage to do that until she has anything more on his case. Enter the booze, which she'd hoped would help, but it's only made her feel a little bit sick.
Walter's answer, as it is for everything, is food and he starts whipping up some scrambled eggs, which he calls "nature's sponge." Fauxlivia happily rests her head on his shoulder and moans about how she knows she's missing something. Walter advises her to sleep on it and let her agent brain process the evidence while she sleeps or whatever and she says there's no evidence at all, nothing linking any of the likely suspects to the crime.
For Walter, the fact that there is no evidence is a kind of evidence itself; someone is covering his tracks (or her, Walter!), Fauxlivia says if that's the case, it would have to be someone pretty high up. He also references Sherlock Holmes (the dog that did not bark) but Fauxlivia doesn't have a clue what he's talking about because they don't have Sherlock Holmes over here. Are we only hearing about the good stuff that Earth-2 doesn't have? Because it would be fine with me if they balanced it out every once in a while with something like, Jersey Shore? Never heard of it.
Anyway right off the top, Walter suggests Broyles. Fauxlivia's all "No way!" and Walter shrugs and says she knows him better than Walter does. "But in the case of a mole, no one should be above suspicion," he says. He continues rambling, something about still being upset about Nixon, but it looks like he's struck a chord with Fauxlivia.