Stupid, sexy, Kallen.

Outside the Chinese embassy, Rollo says he'll kill Zero and is about to Geass Li when he suddenly gets a call from Lelouch. Lelouch is at school, and Viletta is with him, as she vouches for his presence. Rollo is now confused, but he realizes that the Zero in the Chinese embassy isn't Lelouch.

The news broadcasts the Britannian army surrounding the Chinese embassy, and Kallen finds out that C.C. has been impersonating as Zero. (Again.)

Back with the student council, Lelouch helps Millay with cooking, since Rivalz has no taste and Shirley is a hopeless bumbler. Amidst their antics, Lelouch realizes that they've all forgotten about Nunnally. Rather, she's been 'replaced' with Rollo.

In a basement somewhere, the Secret Intelligence Service monitors Lelouch 24/7 with about 180 cameras and 47 observers. Led by Viletta, all of them, including Rollo, know that Lelouch used to be Zero. What they don't know, however, is that he's become Zero again.

Lelouch, of course, knows all of this, but needs to bide his time since Nunnally's life will be in danger if they find out he's Zero again. He's already used his Geass on Viletta before, but as for Rollo…
Elsewhere, presumably the EU, the Britannians are being beaten back by EU forces. That is…until Suzaku shows up. When the EU does not surrender, Suzaku proceeds rip their forces a new one.

Sigh… if only they knew.

Looking through an album, Lelouch realizes that Nina and Arthur are also missing from pictures. Rollo shows up, trying to bait Lelouch to see if he's returned to being Zero. Seeing the locket hanging from Rollo's phone, Lelouch remembers that it's the locket he gave Rollo, no, Nunally on her birthday. He attempts to ask for it back, but this elicits a rather defensive reaction from Rollo.

No! My girly heart-shaped locket! Don't touch!

Underground again, this time at the waterworks where Nunnally was held hostage by Mao last season, Rollo and Viletta discuss Lelouch and Geass. One of the Secret Intelligence staff comes in, and Rollo uses his Geass, which creates a sphere that freezes time within it, to kill the staff member.

Meanwhile, C.C. holds talks with the Chinese ambassador when Kallen bursts in wearing only a bath towel, saying that C.C. should have been the bunny. After Li says omghai2u, a member of the Black Knights runs in and tells them that Guilford has brought out all 256 colors of the captured Black Knights, and intends to execute them at 15:00 tomorrow. Lelouch sees the broadcast too, but Shirley comes in, and he decides to go with her to buy a present for Viletta.

Flashback shows that Lelouch is able to keep his perma-Geass hidden by wearing some contact lens, which also have some untold-of special power that C.C. won't tell him.
Lelouch and Shirley's shopping trip leads them to Omotesando Mall, and he notices that Millay, Rivalz, and Rollo are following them. He'd expected this, and decides to put his plan into action. Having Shirley cover for him, he calls into mall security and tells them that a bomb's been planted. Mall security uses a disguised announcement to let staff members know the situation, but a man Lelouch Geass'd earlier punches the fire alarm, causing a panic as people rush to the exit. One of the surveillance team that had been tailing Lelouch is knocked back by the fray.

Later, when Rollo reports to surveillance headquarters, he finds it empty. Lelouch holds him hostage with a gun, saying that Viletta and the rest went to look for C.C. Taking off his contact, he prepares to Geass Rollo, but before he can blink their roles have been switched, Rollo has taken Lelouch's gun and is pointing it at him. Lelouch realizes it's a Geass that can stop time, as Rollo tells him, 'Lelouch…die, along with that demon eye of yours.'

That's no good. D:

Things aren't looking so great for the Order of Black Knights either, as something blows up at the Chinese embassy. Li is running around knocking out Black Knights, saying that he'll destroy the Order of Black Knights right here.

Nooo~! Why, Li?

Thoughts:
I firmly believe that Lelouch could have saved himself a lot of trouble if he hadn't Geass-induced-suicide'd the baron fellow from the first episode. If he'd dug on that guy for information, you know, maybe he'd know about Rollo's Geass, among other things. Oh wait, but then that would screw over the entire 'mirroring the first season' deal that Sunrise was trying to pull off for whatever reason. Sigh.
Well, I knew Rollo was up to no good. Viletta being the head of the Secret Intelligence Service was not my initial prediction, but I'd definitely kept it in the list of possibilities. Oh, and Rollo is kind of cold-blooded. Don't like that one bit.
Anyway, doesn't look like things are turning out so well for the side I'm rooting for. Lulu's carefully laid plans backfire with Rollo's Geass (You'd think that after Suzaku he'd realize the need for a contingency plan.), and looks like the Order of Black Knight's stay in the Chinese embassy is over.
Of course, next episode will have Lulu overcome all odds somehow. Which will then be spoiled by some elite Knightmare pilot. =(