I think it goes like this: - he makes a joke that praises her, - she puts him down for his joke, - later, while eating, she remembers what he said and she starts to beam happiness, - he notices it.
I must take this time to appreciate the master linguists who manage to create English puns out of Japanese wordplay.
What!?Haruhi~
I've got heat exhaustionAre you okay!?I'm exhausted by your hotness!It's Haru-heat-stroke!...you idiot!Don't joke around like thatCome help me make dinner!Yesh ma'amIt's her in-a-good-mood aura!Beware the HeatAh, there it is!