Moon Dance - S3-E13
Continuity mistake: Early on in the show, Martin is trying to get Eddie to shake a towel off his head while Daphne stands behind the dog, folding laundry. In one shot she is standing with the folded towel over her arm; in the next shot she is folding it again. When she goes to the door, there is something red on top of the laundry basket, but when she returns the towel is back in the laundry basket (it's not the towel Marty put on Eddie's head: that's sitting on the coffee table).
Answer: In the last episode, they explained that Tossed Salad and Scrambled Eggs is a metaphor for the mixed-up people to whom Frasier dispenses his radio psychiatric advice.