S11·E1 The Peggy Horror Picture Show

Feeling unfeminine after a clothing exchange party with the neighborhood girls, Hank offers Peggy a new pair of shoes. After finding that her usual place in Lubbock is out of business, she stumbles upon 'Clairissa's Closet', and a new best friend, Carolyn. They become the best of friends, until Peggy finds out that Carolyn is a he, and Carolyn finds that Peggy is a she.