We start off with lots of diffused blue light and shadow, soft focus and lens flare as two people have sex. It's like a sex scene from a late-night, not-quite-soft-core movie. It's Peter and Olivia, of course -- Olivia on top -- and it's obvious that we're again starting with a dream sequence. "I love you. Do you love me?" she whispers. He says he does, and she tells him to say so. He sits up and says it and they keep kissing and doing it, and then the surprise is that it turns out it's Olivia having the Peter-sexytime dream. She wakes up thanks to the vibrating cellphone on her nightstand -- as far as we know, it's the only thing vibrating right now.
She answers it. It's Peter, who apologizes because it's early and asks if he woke her. Olivia follows society's rule that, for some reason, you never admit to being woken up by a phone call, and asks what's up (not an erection reference, probably). "Me and Walter for the last twenty-four hours. We've been working on the machine," he says, adding that he thinks they've had a breakthrough that could be the first step towards getting him back home. There's a "...but" in his voice that Olivia asks about, and he says he needs her help with something. Also not an erection reference. Probably.
Olivia arrives in the lab while Walter and Peter are mixing bubbling fluids in beakers and flasks, Walter saying the trick is to ensure "optimal heat distribution while not allowing the mixture to separate." Olivia asks about what appears to be a pleasant smell, and Peter says Walter is creating a new breakfast cocktail: hot cinnamon roll. Any excuse for Walter to just be drinking in the morning I suppose, but to justify his alcoholism he explains that the cocktail was conceived as a morning beverage, pointing out that the word itself comes from the rooster, who announces the dawn of each day, in case we don't know what a rooster does.
Walter pours a glass for everyone, and they sip, with Olivia and Peter seeming to find it somewhat objectionable. Olivia asks what's in it, and Peter croaks out that it's mostly cinnamon schnapps and butter, but right now it's mostly butter. "Needs more butter," says Walter. Heh. He goes to churn more butter or whatever, giving Olivia time to be awkward with Peter, who asks her what's wrong. She says she's just tired. Oh, and moments ago you were inside her in her dreams, Peter. She asks what he needs her help with, and he directs hers to the biomechanical interface that he and Walter have just finished. Peter puts his hand on the device, and the machinery locks his arm in place with pins that look kind of painful, actually, and Walter explains that the device is uniquely calibrated to work only with Peter... blah blah we all know this. This Olivia doesn't, though, and wants to make sure she's got it straight: "So you're able to control the machine with your thoughts through this?" she asks, and Peter says that's how he did it back in his own timeline. "And what, you just click your heels and think of home?" she asks, and Peter says they haven't worked out how that works yet, but that's kind of how he ended up here in the first place, so in theory, yeah. Walter says they won't know for sure until they're able to test the prototype on the machine itself, and Olivia clues in that that's what she's here for, since that would require Broyles' authorization. She says she'll see what she can do. I'm sure it's no problem, really. They just want to test this thought-control thingy on the doomsday device that can alter timelines. Probably just a simple requisition form.