Gracie threatening Kathy Morningside on stage making sure that none of the audience nor the host are the wiser. This is awesome for two reasons. One, by then she figures out who "The Citizen" is and is letting her know she'll go after her if and when she does anything to hurt the other pagent girls. The Oh, Crap! look on Kathy's face is even more priceless. Two, Kathy threatened to kill her after a false alarm stunt that nearly compromised her identity and the pagent.
"Proud Mary." Full stop.
Miss New York coming out as a Lipstick Lesbian on air, telling any other lesbians watching that if she can make it, so can they. She then calls out to her girlfriend (watching from the audience) that she loves her as she's dragged offstage.
Miss New York:(blowing a kiss to the audience as she's dragged away) Tina, I love you, baby! Random Audience Member:(jumping up from her seat) I LOVE YOU, KAREN!
The capper? Almost everyone's response is Stunned Silence. Gracie's response is to begin applauding.