It's Hard to Say Goodbye If You Won't Leave - S3-E10
Corrected entry: Niles is hovering over Daphne while she is grating carrots. He takes over for her so she can put the chicken in the oven. You can see that the carrot he is holding goes from having an angle (like it was already being grated) to a whole carrot, and back again.
Correction: The carrot never changes. After Niles takes the carrot with the 45° angle, he drops it after his first try with the grater. You see where it lands, and when he picks it up he simply picks it up from the other end, so the straight cut part is showing and then you see him turn the carrot in his hand so the 45° angle cut is showing.
Bishop73