Small reminder that
'Lily said' "followed by whatever"
Means that Kat is repeating something for Lily.
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The commotion generated from Sue's story, or perhaps just the amusement Kat was sharing across their link, was enough to cause Lily to stir. She tried to settle back down to sleep but could tell something was off. When she opened her eyes, it was instantly clear she was not sleeping on Kat. She looked around the room to search for Kat before hopping back to her girlfriend.
"Right, now that Lily's awake we can grill her instead. We can get off my first kiss. Nothing more needs to be said!" chirped Sue happily.
[I feel like I'm missing something here…]