I can see why Flynn is so upset. Lasagne is NOT breakfast!
Also I don't think that's the end of Lydia. Walt seems to still be holding a grudge about the shut-up pay that Mike is paying. After talking alone with Lydia, Walt now knows that she knows who Mikes guys are. I think Walt will team up with Lydia to get rid of Mike and his guys. Not only do they both hate Mike, they also both seem to think that you can do whatever you want if you " are doing it for family".
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