Regina's Office: Regina refers to Sidney as the "disgraced ex-reporter" which, in my opinion, is an even bigger tip-off that she and Sidney are in cahoots. She is trying too hard, here. Anyhow, Emma tells Regina about the missing funds, and the missing records that could/would document what has happened to that money. Regina says she probably checked out the records and if she checked them out three weeks ago, they burned in the fire that helped Emma win the sheriff's election. Smiling, she adds, "I have nothing to hide."
Emma leans over the desk and stares at Regina's face. When I first watched this scene, I thought she was trying to activate her lie-detection "super power." And now, despite what else Emma is really doing (which I'll get to in a minute) I again think that's true. I really think Emma knows she is being set-up and is setting up Sidney and Regina, in return. Delusional? Perhaps. But it's helping me get this recap with minimal bitterness, so I don't care. Just watch Emma's face here as she tells Regina, "Okay." Listen to her voice as she says, "There's nothing for us to do. Let's go, Sidney." When Sidney protests, watch the sidelong look Emma gives him as she walks past him and through the door. Listen to how clipped she is, when she says, "No. She's right. We have nothing."
Outside Sidney berates Emma's plan. "I thought you were going to do something." Emma never looks at him. She just says, "I did. I planted a bug. You win, Sidney. Let's do whatever it takes." Now, granted all my rationalizing about her demeanor may just be that, but I believe in her super power. Oh and to the people in the forum who are complaining about Emma's hair looking so good, given her job, to you, I also say, "Pshaw." She is a fairy tale princess, and daughter of same. Beautiful hair is clearly another one of her super powers. So there.
Enchanted Forest, Knifingham Palace: I am bored by and frustrated with Leopold, so I'm largely plagiarizing my previous coverage of this next scene. Leo summons Genie to his chamber and says he has reason to believe Regina has given her heart to another man. He shows Genie the diary entry, in which Queenie gushes about the mirror and how it has reawakened her hope for love and companionship. Leopold asks Genie to find out who the man is, who has stolen Queenie's heart.