How to put that foot in your mouth, the G way!

I have this friend, G
I met her today.
She has a friend, U
Who had a classmate in IIMK.
This classmate is South Indian.
We'll call the classmate C.
Also, an old virtual friend of G.
Virtual friend, as in Chat/E-mail friend.
But I think its pretty crass to say "chat friend"
Or, "mail friend" or any such friend.
I think, virtual friend is more decent.
But thats Immaterial.

So, G was speaking to U who gave her C's cell number.
Now... cell numbers are verrrrrry dangerous things.
So, G messages C
C called G, as a reply to the msg.
And this is what the conversation was like

G: Hey.... how're you doing?
C: Cool... what about you?
G: I'm fine... how's work?
C: Work is fine... taking a client out for dinner
etc etc etc

Now, Mr. C talks to G for an entire 10 minutes, getting all paly. G thought he probably recognised her cell number, as she has once given it to him, something like 3 or 4 years ago. But then Mr. C comes up with

C: Btw... who's this?
Totally taken aback, G answers

G: G******
C: You mean G**** K*** ???
G: Yup
C: Oh Hi G!! WHat a pleasant surprise. Actually I have your number stored on the other cell... This is so cool etc etc etc

Later the conversation drifted to "how's Bangalore" and "how's Pune" and stuff, when

G: I got a friend in Bangalore
C: Oh... cool. what's she doin' ?
G: She's studying at xyz
C: Hey! That's right next to my house
G: Oh cool.
C: So, is she good looking?

And now ladies and gentlemen, comes the punch

G: No.
Followed by a long, pregnant pause. (Will someone tell me, why is a pregnant pause called a pregnant pause)
G: She's South Indian

Now, what G wanted to convey was - She is not good looking. Period. And went on to further describe her as she's a South India, nice girl, good natured yada yada yada. But Mr. C goes like

C: This is not right. All South Indian's are not necessarily ugly!
G: Hey wait... lemme continue
C: No way... what are you trying to do? Stereotyping South Indians as ugly?

As he assumed that she implied, that the girl is not good looking... and the reason for her being on the wrong side of the looks scale was the fact that she was South Indian!

I believe total chaos followed, and finally G wriggled out of it by something as stupid as "Maybe not all, but South Indians with the surname C*** are definitely ugly" or something like that!

Its been over 6 hours since I heard the story, and I'm still rolling in the floor laughing!