The One With Phoebe's Cookies - S7-E3
Character mistake: When Phoebe brings in her frozen cookie and Monica tastes it to try to determine the ingredients, she says "I definitely taste nutmeg." She then goes on to brag about how that's the difference between a professional and a layman. Except that later when she finds the actual recipe, it's from the Nestle Toll House bag - and that contains no nutmeg.
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.