Tabula Rasa - S6-E8
Spike: Oh, listen to Mary Poppins. He's got his crust all stiff and upper with that nancy-boy accent. [Everyone looking at him.] You Englishmen are always so... [pauses.] Bloody hell! [Ticks off on his fingers.] Sodding, blimey, shagging, knickers, bollocks, oh God! I'm English!
Giles: Welcome to the nancy tribe.
Chosen answer: Angel is saying that he is still jealous and Buffy recognizes that this is his way of saying he wishes that they could be together. That is why they both smile.