^^^^
She looked pissed when he put his hand up to her face (which was way rude) and then clearly attacked him by asserting his gayness was dirty - even if in jest.
She said what she said with that whole big queen hand and head gesture and then punctuated it with a very gay term like honey. I mean does anyone really think after seeing that that she was not attacking him in retaliation for the hand thing and she did it by asserting his hand was dirty from gay sex. Here is the video - you judge for yourself.
In the end, I think she was taken aback and was pissed at him and then tried to cover it with humor.
Put it this way, like Rosie, I know of no gay person who cannot tell that KR was camping it up and EXACTLY what she meant.