At Kevin's apartment, Jana primped before she knocked on Kevin's door. Jana had dishes of Kevin's favorite foods, but initially, he seemed annoyed by her impromptu visit. Jana insisted she'd stopped by only as a friend, so Kevin reluctantly invited her inside. Jana promptly made herself at home.
While Jana and Kevin dined, she caringly chatted about Fen's Christmas-morning experience. Jana perused the apartment and said she could envision it filled with toys and baby paraphernalia because she intended to convince Daisy that Kevin would make the perfect dad. After Jana left, Kevin cradled Delia's "first Christmas" ornament in his hand and seemed lost in thought. Kevin phoned Michael and said he had something to discuss.
At Daniel's loft, Daisy became frustrated as Daniel callously stuffed into a box all the festive decorations she'd set out. Daniel insisted that he and Daisy weren't a family celebrating the holidays together. Daniel complained about having given up his freedom and privacy in order to act as her jailer. Daniel instructed Daisy to get herself ready for a checkup at the hospital. Before Daisy and Daniel left, he told the guard to let the monitoring company know that Daisy was leaving the premises.
At the hospital, Daisy seemed crushed after Daniel refused to accompany her into the exam room to hear the fetal heartbeat or view an ultrasound image of the baby. Instead, Daniel studied a brochure about adoption after Daisy went into an exam room. Later, the obstetrician stepped out with Daisy and informed Daniel that the mother-to-be was already dilated and could soon give birth to his daughter. Daniel seemed stunned.
After Daniel and Daisy returned from the hospital, he reminded her that she'd be returning to jail after she gave birth. Daisy claimed that Daniel was in denial because he was refusing to acknowledge his role in the baby's life. Daisy told Daniel that he'd be unable to remain aloof after he gazed into his baby's eyes. Daniel seemed to expect a knock at the door, when a woman named Genevieve, from the Family Hope Center, arrived. Daniel explained that he'd summoned a representative from the adoption agency.
Daisy yelled that Daniel had no right to contact the agency without first having asked her. Daniel explained to Daisy that it wouldn't hurt to discuss matters because she had admitted that they needed a plan. Genevieve seemed taken aback by Daisy's anger, so she reminded them that newborns could be dropped off at any hospital or fire station. Daisy angrily ordered the woman to leave. Daniel reminded Daisy that she was going to jail for a long time, and he maintained that he didn't intend to take care of the baby.
Daisy insisted that Daniel would love his daughter. Daniel replied, "By no fault of my own, I fathered this child. My one and only responsibility is making sure that she is placed in a good home, where she's loved and cared for." Tears flowed down Daisy's cheeks when Daniel firmly announced that the craziness was about to end. After Daniel left, Daisy told the guard she needed to use his phone to order a pizza she craved. The guard reluctantly agreed. Daisy dialed a number and proceeded to order a pizza. Jana showed up later, but she was bundled from head to toe. After the guard checked the pizza box, he allowed the person to enter.
Daniel ran into Phyllis and Summer at Crimson Lights. Summer was holding her bright pink bag in her lap and thanked Daniel for giving it to her for Christmas. Phyllis noted that the bag was packed for a sleepover. After Summer left with her friend, Phyllis asked her son what was wrong. Daniel explained that Daisy's baby could be born soon, and he needed to figure out what to do. Daniel explained that Daisy believed she would have the baby, stay with him, and play house happily ever after. Phyllis agreed that Daisy was delusional.
Daniel cried that he'd have to make the right choice on his own and admitted to his mom that he didn't know what to do. Daniel worried about what would happen if plans weren't finalized before the baby came. Phyllis offered to phone her attorney and ask about Daisy's rights, Daniel's rights, and about his obligations to the child. Phyllis stammered that she wished to adopt the baby.
On the patio at the coffeehouse, Victor ran into Diane and Kyle. Victor chatted with Kyle about Christmas, and Diane mentioned that Kyle had spent the holidays with his dad. Victor noticed Kyle's hockey bag and invited the boy to the ranch to enjoy ice-skating, riding snowmobiles, and enjoying the horses. Diane sent Kyle away to get her a coffee refill.
Diane reproached Victor for enticing Kyle to move to the ranch. Victor told Diane that the invitation would remain open should she decide to accept it. After Victor left, Kyle pleaded with his mom to stay at the ranch. Diane changed the subject and reminded Kyle that his ride was ready to take him to practice. Diane warned Kyle not to mention Victor's offer to Jack when Jack picked up Kyle from hockey practice. Kyle said he knew that Victor and Jack were enemies.
After Kyle left, Nick stopped by and told Diane that they should get together later. Diane explained that Victor had hired her to work on a project to be built in Osaka and to renovate the east wing of the ranch. Nick reminded Diane that she could stop by his place for lunch anytime she was at the ranch. Diane smiled, batted her eyes, and replied, "I could, couldn't I?"
At the jail's interrogation room, Sharon and Adam told Leslie Michaelson, Adam's attorney, that they believed Skye was still alive. Adam explained that someone had ordered a bottle of Skye's favorite, rare perfume from a European gift shop and had it shipped to Hawaii. Leslie doubted that the purchase of the perfume would prove that Skye was alive unless someone found her. Sharon worried that Skye wouldn't stay in one place for long. Sharon refused to wait for a private investigator and chose to fly to Hawaii and investigate. Leslie admitted that Sharon's fact-finding journey was the best shot Adam had.
After Leslie left, a worried Adam told Sharon he wished she wouldn't go. Sharon reminded Adam that he believed she was a strong woman. Sharon explained that she'd secretly snap photos of Skye in order to prove she was still alive. Though Sharon hated leaving Adam alone, she warned him to keep the trip a secret because Victor might alert Skye. Adam warned Sharon not to talk to Skye or get near her. Sharon vowed to return with evidence.
After Sharon left, Victor stopped by the jail, looking for Sharon. Adam peered under the table and flippantly informed Victor that Sharon wasn't present. Victor angrily warned Adam not to play games because he'd regret it. Adam shot back that he wasn't afraid of his father and rhetorically inquired what additional damage Victor could inflict. Adam spitefully remarked that Victor's plan to frame him for murder was ironic because Victor's victim, Walter Palin, was actually dead. Adam added that if he possessed none of his mother's goodness, that would mean he was like his father, and he would prove that Victor was framing him. Victor insincerely wished his son good luck. After Victor stepped out, Adam whispered, "Aloha, Victor."
Phyllis later visited Adam while he was in his cell. Adam blasted Phyllis for twisting the evidence he'd shared with her about Skye being alive. Phyllis insisted she had never promised to prove his innocence. Her aim, she explained, was to follow the evidence to see where it would lead. Adam asked why he'd risk showing Phyllis the photo of Skye if he'd been the one to discard her bloody clothing where it could easily be found. Phyllis suggested that Adam, desperate, had used her in order to establish reasonable doubt.
Phyllis admitted using Adam to glean information for her story. Phyllis smugly informed Adam that she'd gone to the jail so she'd could adequately describe to her readers what it was like for him to be in prison, where he belonged. Phyllis begged Adam to share graphic details about hiding Skye's body. Adam explained that the big story was that Skye was scamming them all because she was still alive. Phyllis claimed she'd release a new bulletin on the Internet, if Adam could prove that Skye was alive.
Adam, casually reclining on the cot in his cell, warned that Phyllis would look foolish if she published a story about him being a murderer because evidence was being gathered as they spoke. Phyllis sarcastically noted that the timid Sharon would be no match for the devious and dangerous Skye. Phyllis demanded that Adam tell her where Sharon was and warned that Sharon was not equipped to deal with Skye. Adam claimed that Phyllis vastly underestimated Sharon.
Phyllis stopped by the tack house to pick up Summer and mentioned hearing about Victor showing up to celebrate Christmas. Nick said he had no idea what had spurred his father's change of heart and doubted that the change would last. Phyllis noted that Victor had seemed happy at Adam's arraignment after the judge deemed Adam a flight risk and ordered him to be incarcerated. Nick cracked a slight smile at Phyllis and shook his head in agreement.
Later, Sharon stopped by to see Faith and was disappointed to discover that the child was with Nikki. Sharon told Nick she'd be out of town and wanted to let him know in case he needed her. Nick insisted he wouldn't need to contact Sharon and mockingly wished her a safe trip.
After Sharon left, Victor stopped by and asked about her. Nick explained that Sharon had stopped by earlier and said she was heading to the airport. Victor wondered aloud if the trip was connected to Adam, but Nick said he did not know. After Victor left, Diane stopped by and seductively asked Nick if he was free for lunch. After Nick pulled Diane inside, they kissed passionately.
After Victor returned to the ranch, he phoned an investigator and ordered him to monitor charges on Sharon's credit card. Victor later learned that Sharon had made plane reservations, and he instructed the investigator to let him know about Sharon's car rentals and hotel accommodations.
Leslie later returned to the jail and visited with Adam in the interrogation room. Leslie reported that Sharon had texted her from a remote area of an island. Sharon reported that she was at the post office where the perfume had been delivered. Leslie told an anxious Adam that it might be a while before they heard more from Sharon. Adam berated himself for allowing Sharon to venture near Skye. Leslie explained that Sharon was determined, so they couldn't have stopped her. Adam replied, "Any hope of me having a life outside of prison is all in Sharon's hands now."
Diane arrived at the ranch and told Victor that she hadn't meant to sound ungracious at the coffeehouse. Diane said she'd decided to take Kyle to Toronto for a visit. Victor explained that Diane's timing was perfect because he would be busy handling a business crisis. After Diane left, Victor phoned someone and told them to have everything ready because he was heading to Hawaii.
At a quaint general store and rural post office on an island in Hawaii, a customer, Skye, cavorted with a clerk, Koa. Skye, wearing no makeup and sporting darkened, braided hair, collected mail from her mailbox. Koa teased that Skye's letters came from secret admirers. Skye placed an order for a pound of coffee, a few papayas, and a current newspaper from the mainland.
After Skye left, Sharon coyly ventured into the store and approached postal box number 18, the one to which the boutique had sent the perfume. Sharon showed Koa a photo of Skye and asked him if he'd seen her. Koa's eyes narrowed as he studied the photo of Skye with lighter-colored hair.
Daniel was stunned that Phyllis wanted to adopt Daisy's baby. Phyllis thought it was the only option for their family. Daniel was concerned about how Summer would be affected by Phyllis' decision. Phyllis said she was determined to adopt the baby because Daniel refused to step up and take responsibility for his child.
Chloe interrupted Daniel and Phyllis' argument to ask Phyllis to sign off on some magazine business. Phyllis told Chloe to go away. Daniel assured Phyllis that he would not allow Phyllis or Kevin to adopt baby girl Carter. Daniel would make sure that a family far away from Genoa City adopted Daisy's baby.
Phyllis followed Daniel through the coffeehouse and said she had decided that adoption by strangers was not good enough for Daniel's child. As his mother, Phyllis ordered Daniel to sit down and listen to her. Daniel wanted the child to be adopted by people who would love her. Daniel pointed out all the flaws of Phyllis' plan. Phyllis insisted that Daniel would regret giving up the baby. Daniel disagreed because of the way the child had been conceived. Daniel did not feel that the baby was his, and he wouldn't change his mind about that.
Phyllis claimed that she knew some things better than Daniel. Phyllis was sure that the conception would never matter once Daniel held his daughter. Phyllis recalled that Danny Romalotti didn't love Daniel any less when he learned he was not Daniel's real father. Phyllis believed that Daniel would fall in love with Daisy's baby. Daniel could not be talked into Phyllis' way of thinking.
Jana complimented Daisy on using the pizza delivery ruse to get Jana to visit. Daisy was thrilled to have some junk food instead of all the organic meals she'd been fed. Daisy told Jana that she had begun to dilate and would be delivering the baby soon. Daisy needed to finalize the deal with Jana. Daisy said she would sign away her baby to Jana in exchange for Jana changing her testimony against Daisy. Jana was worried that Daisy would double-cross her.
Daisy picked up a napkin and wrote a promissory note to Jana, saying that she would give Jana the baby. Jana didn't believe the note would hold up in court. The guard knocked to get the "delivery boy" to leave. Jana hurried to go, but warned Daisy to keep her word.
Chloe appeared at Daniel's and met with Daisy. Chloe wanted to know what Daisy would be doing with the baby. Chloe said she'd been in Daisy's position when she was pregnant with Delia. Chloe said that Daniel didn't want the baby and never would. Daisy said Daniel had begun making arrangements with an adoption agency. Chloe knew the perfect person to adopt the baby -- Kevin. Chloe pointed out that Kevin was family, not a stranger. Chloe also told Daisy that Kevin had all the skills of a great father.
Daisy said that she was sick of being treated like a walking incubator. Chloe understood that feeling. Daisy said that she would determine what happened to her baby. Chloe said that once she had Delia, being a master manipulator had no longer mattered. Chloe insisted that Daisy would be wise to choose Kevin as the father of the baby. Chloe was willing to help make that happen.
Lauren and Michael were at home together. Lauren suggested that they go out to dinner. Michael was surprised that Lauren felt confident about going out. Michael said that Kevin would be arriving for a legal talk and he could babysit Fen for them.
Kevin arrived at Michael's and asked for brotherly advice from Michael. Kevin thought his chances to adopt Daisy's baby had improved. Lauren overheard and was ticked off. Lauren explained that if Kevin adopted the baby, they would all be connected to Daisy forever.
Kevin said that Jana was convinced that Daisy would give up her parental rights to the child for Kevin. Lauren was stunned that Jana was talking with Daisy. Michael reminded Kevin that Daniel had a say in what happened to the child. Lauren was upset and left in a huff.
Michael was furious with Kevin for bringing up Daisy when he knew that Lauren would be aggravated. Michael revealed that Lauren had been ready to go on a date before Kevin mucked things up. Kevin said that he'd never meant to upset Lauren and that he hadn't known that she was home when he arrived. Kevin explained it was important to him to adopt Daisy's baby and raise her properly. Michael was more concerned about Lauren than about the baby.
Michael said that Daisy had been as damaged by terrible Tom Fisher as Kevin had been, and she could not be trusted. Kevin thought that if he adopted the baby, he could get a restraining order that would keep Daisy out of the child's life. Michael was convinced that Kevin was being naïve. Michael said that Daisy would never disengage from their lives if Kevin adopted the baby.
Daniel demanded that Phyllis get it through her head that he had no feelings for the baby, and it would not change after she was born. Daniel began to leave when Kevin approached him. Daniel told Kevin to talk with Phyllis because they had a lot in common. Phyllis and Kevin both had the same idea about adopting Daisy's baby.
After Daniel walked out, Kevin asked Phyllis what was going on. Phyllis said that she had decided that she had to adopt Daisy's baby to keep her in the family. Kevin pointed out that he was family. Phyllis said she was the grandmother. Kevin only cared about what was best for the baby.
Phyllis informed Kevin that he could not handle raising a baby alone. Kevin thought Phyllis would simply leave the baby with a nanny. Phyllis reconsidered her stance. Phyllis said that if Kevin teamed with her, they'd have a better chance of convincing the court to give one of them the baby. Kevin was skeptical about Phyllis' plan. Phyllis asked Kevin to support her bid to adopt. Phyllis said that because Kevin was a divorced, single man with a lousy track record, he'd have poor odds with a judge.
Kevin reminded Phyllis that she was hardly squeaky clean. Kevin remembered when Phyllis lost custody of Daniel. Phyllis declared that she was raising Summer on her own, and nobody could say Phyllis was not an excellent mother. Kevin said that he'd consult a family lawyer on the matter. Phyllis said that Daniel wouldn't stop them if they worked together. Kevin asked what his role would be if Phyllis got the baby. Phyllis said that her door would always be open to Kevin.
Kevin had trouble trusting Phyllis. Phyllis still held out hope that down the road, Daniel would want to be involved with his daughter. Phyllis pressed Kevin to agree with her. Kevin told Phyllis that he would consider her request.
Later, Michael showed up at Crimson Lights to apologize to Kevin about their fight. Kevin said that his chances of getting Daisy's baby had sunk because Phyllis had decided that she would try to adopt Daniel's daughter. Michael was blown away by the news. Michael confronted Phyllis at her table. Phyllis confirmed her decision to try to adopt.
Phyllis knew it would be troubling for Lauren, but Phyllis had considered her decision carefully and knew it was the right thing for her family. Phyllis believed that Lauren could handle it. Michael wasn't so sure. Phyllis said the baby was innocent. Michael said a blind adoption would be better for the baby. Michael reminded Phyllis that Daisy would be too close to all of them if Kevin or Phyllis adopted. Michael told Phyllis that he loved her, but warned that if Phyllis followed through with her plan, their friendship might be over.
Chloe appeared at the coffeehouse, and Kevin was cool to her. Kevin fixed Chloe her favorite coffee drink. Chloe asked Kevin to get past their disagreement at Christmas. Kevin said he was acting normally and denied his confession of love to Chloe, saying it was just his getting into the holiday spirit. Chloe didn't believe that. Kevin said he wanted to be nice to Chloe before another guy dumped all over her. Insulted, Chloe walked out.
Daniel met Lauren at Gloworm. Daniel said if Phyllis sent Lauren to plead her cause, Daniel would never agree to be a real father to Daisy's child. Lauren had no idea what Daniel was talking about. Daniel told Lauren that Phyllis wanted to adopt Daisy's child. Lauren couldn't believe it. Daniel said it was all talk at the moment, but Phyllis was determined to adopt the baby.
Lauren asked if Daniel wanted Kevin or Phyllis to adopt the baby. Daniel wanted neither of them involved with the child. Daniel wanted a family far away from Genoa City to adopt the baby. Lauren was grateful that Daniel wanted Daisy's child and Daisy out of their lives. Lauren was worried that a judge would listen to the mother's wishes. Daniel believed that the court would never be swayed by Daisy's opinion over Daniel's if the judge considered Daisy's history.
Daniel promised that he would use the power of his parental rights to get Daisy out of the child's life. Lauren felt that Daisy was pure evil, and Daniel agreed.
Jana walked into the police station and said that she wanted to change her testimony in a case that had yet to go to trial. Jana explained that when she gave her testimony initially, she'd been traumatized by the kidnapping and had undergone surgery. Jana said she had not remembered what happened correctly. The police officer turned on the tape recorder. Jana said while she'd been locked in the cage, she had blamed Ryder, Sarah, and Daisy equally. Jana had realized, however, that Sarah had been the monster. Jana said that Daisy had been frightened and she had never hurt Jana. Jana said she couldn't testify in court that Daisy was responsible.
Alone at Daniel's, Daisy spoke to her unborn baby. Daisy was angry that Daniel had yet to change his mind about raising the child with her. Daisy was sure that Jana could keep Daisy out of prison. Touching her belly, Daisy promised that nobody would ever take the baby from Daisy.
In the Hawaiian general store, Sharon asked the shop owner to look again at Skye's photo. He told Sharon that he'd never seen her. Sharon said that Skye had a mailbox there, but the shop owner said he had never seen Skye. Sharon asked some customers if they'd seen Skye. Sharon bought a map and asked the shop owner if there were any poker games going on in town because Skye would be in the middle of them. The man suggested big time poker was played only in Honolulu.
A tour guide invited Sharon to a volcano hike that night. He insisted that Sharon would enjoy the experience. Sharon explained she was looking for someone and showed him Skye's photo. The tour guide hadn't seen Skye. He told Sharon to make a sacrifice at the volcano to get the answers that she wanted. Adam called Sharon on her cell phone. Sharon reported that Skye had picked a great place to hide because it was so remote. When Sharon mentioned the tour, Adam said that Skye loved adventure and urged Sharon to take the volcano tour.
At the general store, Sharon bought supplies for the hike. She confided in the shopkeeper that the woman Sharon was searching for was presumed dead. Sharon needed to find her to save the man she loved, who was accused of killing the lady. The shopkeeper apologized, but said he didn't know the missing woman. He gave Sharon a bottle of liquor to sacrifice to the volcano. The tour guide gave Sharon a knapsack for her gear. Sharon packed up and then left with the group.
At Skye's house on the island, Victor called to her then entered. Victor was surprised that she wasn't home. Victor made a call and learned that Sharon had rented a car and gone to the general store. Victor said that he would check it out. Victor saw the flyer for the volcano tour and noted the time for the hike. When the tour group left the shop, Victor entered and the shopkeeper greeted him. After some general chitchat, the man introduced himself as Koa. Victor knew the expression Koa recited to him, and Koa realized that Victor was Mr. Newman.
Koa had set Skye up in the house according to Victor's instructions. Victor said Skye wasn't at the house. Koa told Victor that an American woman had been asking about Skye. Victor guessed correctly that it was Sharon. Koa told Victor that Sharon had gone on the volcano hike.
On the trail, the guide gave instructions and urged the hikers to heed his warnings. Sharon was in the rear. Sharon lagged behind the group and was wandering in the dark with just her flashlight. Looking ahead, Sharon screamed when she saw she was at the lip of the volcano. Sharon dropped the flashlight. A woman approached Sharon and through the misty fog, Sharon saw it was Skye.
Daniel returned to the apartment and noticed that Daisy had ordered a pizza. Daisy told Daniel that she realized that she'd been a bitch to the woman from the adoption agency. Daisy declared that she did not want to give up the baby. Daniel told Daisy the decision wasn't hers.
Daisy said she wasn't the same person who'd kidnapped Lauren and Jana. Daisy was confident that everything would work out, and she'd never spend another day in jail. Daniel took a slice of pizza and wondered why Daisy was acting so sure of herself. Daisy said she believed that a court would understand her plight. Daniel was doubtful.
Daisy said they had to make plans before the baby was born, like visitation schedules. Daniel said the laws of nature might have resulted in Daisy getting pregnant, but the laws of the state would prevent Daisy from keeping the child. Reading from a page on the Internet, Daniel told Daisy how he could force her parental rights to be terminated. Daniel read from the Wisconsin legal code and pointed out how Daisy had violated the law in numerous ways, which would result in her losing any rights to the baby. Daisy was stymied. Daniel took his laptop and left the apartment.
Jana confronted Kevin outside his apartment. Kevin asked Jana why she was there. Jana said she had a reason to celebrate and had champagne. Jana announced that Kevin was going to be a father. Inside the apartment, Kevin drank a beer quickly, then asked Jana if she was pregnant. Jana explained she wasn't having a baby, but Kevin would be able to adopt Daisy's baby.
Jana said that she'd made a deal with Daisy. Daisy would give the baby to Kevin in exchange for Jana recanting her testimony. Jana was sure that Kevin would be a wonderful father. Jana wanted to make sure Kevin got the chance to raise his niece. Jana said that she had changed her testimony for Kevin.
Kevin wanted to know what Jana had told the cops. Jana revealed that she had told the police that Sarah had brainwashed Daisy and Ryder. Jana claimed that Daisy had been a victim, and Daisy had never hurt Jana. Kevin was upset that Jana had lied to the police. Jana was convinced she had done the right thing because Kevin would save the baby's life. Kevin said Jana had a habit of going too far, and this was a prime example. Jana recalled that whenever she went over the edge, Kevin would help her find middle ground.
Kevin said that he had to go do something right away and asked Jana to leave. Jana asked if they could speak again and then asked Kevin if he had plans for New Year's Eve. Jana offered to spend the holiday with him. Kevin said he'd be watching a movie by himself. Kevin led Jana out of the apartment and closed the door.
Kevin showed up at Daniel's and confronted Daisy. Kevin accused Daisy of using Jana and the baby to make sure Daisy never returned to jail. Kevin said that Daisy had taken advantage of a mentally imbalanced woman, adding that Daisy had caused Jana to become unhinged.
Daisy defiantly told Kevin that he could not have her child. Kevin warned Daisy not to mess with him. Kevin said that Daisy had no idea of what kind of a man he was. Kevin said he would make sure Daisy never get her hands on the baby. Kevin declared that once he set Jana straight, Jana would bail on her deal with Daisy.
At Crimson Lights, Phyllis was working on her laptop when Nick approached her. Nick said that he had been doing Newman business because Victor was out of town. Faith was with a nanny while Nick was working. Phyllis asked about Sharon, and Nick said Sharon had left town to clear her head.
Phyllis informed Nick that Sharon was working for Adam. Sharon was trying to prove that Skye was still alive. Nick asked how Phyllis knew about Sharon, and Phyllis said that Adam had told her. Phyllis explained that Adam had boasted to her that Sharon had so much faith in him, that she was determined to find Skye. Nick asked if Phyllis planned a follow-up story about Sharon and Adam. Phyllis said that she was determined to expose Adam as the criminal she believed he was.
Nick asked if Phyllis had a vendetta against Sharon. Phyllis was surprised when Nick said that he supported Phyllis' decision to go after Sharon. Nick claimed he would never rescue Sharon again. Nick would never be a knight in shining armor for Sharon. Phyllis said she once had wished for him to say that. Nick wasn't happy about abandoning Sharon, but he thought Sharon had made a terrible choice.
Nick said he couldn't protect Sharon any longer. Nick said that he was totally focused on Summer and Faith. Phyllis said people deserved to know the truth about Adam. Nick said whatever happened to Adam, Sharon would be collateral damage.
Later, Kevin approached Phyllis at Crimson Lights. Kevin wanted to know where Daniel was. Phyllis didn't know. Kevin said the baby was already turning their lives upside down. Kevin realized that he wasn't ready to be a parent. Phyllis assumed that Kevin would be supporting her case to adopt the baby.
Phyllis went to the counter and told Kevin that she had called Vance. Phyllis explained that she was sure her case was strong for adopting Daisy's baby. Kevin said Phyllis had misunderstood him. Kevin didn't want to adopt the baby, but he would not want Phyllis to adopt the baby either. Kevin agreed with Daniel's decision. Phyllis tried to dissuade Kevin, but he said the baby's needs had to be first.
Jana took a bottle of non-alcoholic champagne to Daisy. Jana wanted celebrate their deal and the New Year. Jana was sure that Daisy would live up to her end of the bargain. Daisy toyed with Jana, asking her leading questions about what Kevin thought of Jana's plan. Daisy didn't let on that Kevin had confronted Daisy and told her what he really felt.
Daisy told Jana to leave because Daisy expected Daniel back shortly. Jana offered to return later, but Daisy said she was fine. Daniel returned with a U.S. Marshal. The marshal explained to Daisy that she was being transferred to the hospital on New Year's Day to have the baby. Daisy would then be returned to jail.
In Hawaii, Sharon confronted Skye on the trail to the volcano. Sharon told Skye that Adam was being accused of killing Skye. Skye thought that Adam deserved to be punished for walking out on their marriage. Sharon said that Skye's broken heart was not a good reason for her to destroy Adam's life. Sharon was determined to get Skye to return to Genoa City with her. Skye adamantly refused. Sharon said she'd take Skye's picture as proof that she was still alive.
Skye grabbed for the camera and fell into the crater. Sharon reached for Skye's hand to keep her from falling into the volcano. Hiding on the trail, Victor listened to Skye and Sharon's confrontation. Sharon struggled to help Skye. Skye felt herself slipping away. Sharon was unable to lift Skye out of the chasm. Victor remained in hiding and did nothing to help Sharon save Skye.
Skye fell into the volcano, perishing in the flames. Sharon called for help. Sharon ran off in another direction and never saw Victor. At the general store, Sharon was traumatized as she explained to a cop how Skye had fallen into the volcano. A cop questioned Sharon about her connection to Skye. Sharon said that she and Skye had been married to the same man. Sharon was unable to show the photo she had taken of Skye because her camera was missing.
Sharon assured the cop that she had done everything to save Skye. Sharon wanted to go back to the crater to search for the camera and any sign of Skye. Sharon's phone rang. It was Nick. Nick asked Sharon if she was working with Victor to find Skye. Sharon said she'd found Skye, but had not seen Victor. Sharon ended the call before explaining what had happened to Skye.
Still at the crater, Victor found the camera on the ground and threw it into the volcano. When Sharon and the cop returned to the site, there was no sign of Skye or anything else. The tour guide walked over to talk with Sharon. The guide remembered Sharon, but when asked about Skye, he said that he had never seen Skye.
Back at the general store, the cop told Sharon that he believed that Skye had never been at the volcano. The cop had called Genoa City police and got the lowdown from Ronan. The cop knew that Sharon was desperate to find Skye so that Adam would be freed. The cop refused to believe that Sharon had ever seen Skye. He demanded proof that Skye had been there. Sharon asked what kind of proof would convince him. The cop wanted something that had belonged to Skye.
Sharon said that Skye had a mailbox in the store. Sharon said the letter carrier would have something of Skye's. When asked by the cop, Koa denied knowing Skye. The cop advised Sharon to give up her antics or he would accuse her of fraud. The cop advised Sharon to leave the island.
Victor returned to Skye's island home and collected all her belongings. Victor doused the place with gasoline. Victor then threw a match to the ground and watching the house go up in flames.
Nick went to see Adam and told him that Sharon had told him that she'd found Skye. Adam wondered if Nick could handle Sharon choosing Adam over him. Nick told Adam he didn't care about Sharon, but warned Adam to stay away from Faith.
Adam said that Nick would probably use Faith to try to hurt Sharon. Nick admitted that he had underestimated Adam and his power over Sharon. Adam said that once he was out of jail, he and Sharon would get custody of Faith again. Adam declared that there was nothing Nick could do about it.
Abby was at Jimmy's for a New Year's Eve party. Daniel called to say he was on his way. Daniel told Daisy that he was leaving her alone for the night. Daniel reminded Daisy that her ankle monitor was active and if Daisy attempted to escape, she'd be arrested. Daisy was in tears as Daniel left.
Kevin was behind the counter at Crimson Lights. Jana was surprised to find him working on New Year's Eve. Kevin said he would be heading to Jimmy's later for the party. Jana asked if it was a private party. Kevin said it was open to the public, so Jana suggested meeting him there.
Chloe walked into Crimson Lights after Jana left. Chloe was all dressed for the holiday. Chloe asked Kevin to accompany her to Jimmy's party. Kevin was surprised that Chloe wanted to be with him. Chloe said that they were still friends, and Chloe enjoyed his company.
Kevin rejected Chloe's invitation. Kevin didn't want to be Chloe's sidekick anymore. Chloe told Kevin to enjoy his New Year's Eve all alone. Kevin said he wasn't spending the night alone. Allison arrived, and Kevin kissed her. Chloe walked out in anger.
At Jimmy's, Abby greeted Daniel. Daniel was confident that he would soon be free of Daisy. Abby noted that Daniel seemed relieved. Daniel said aside from his relationship with Abby, 2010 had been a bad year for him. Daniel said he was counting the moments until he was free of Daisy.
Jana stopped by Daniel's to see Daisy. Jana noticed that there was no security guard outside the door. Daisy said the ankle monitor was still active. Jana told Daisy that she had changed her testimony with the cops. Jana believed that Daisy would be free soon. Jana was looking forward to the new year with Kevin, helping him raise Daisy's baby.
Daisy implied to Jana that things might not be working out for Jana and Kevin. Jana told Daisy that Jana and Kevin were really into each other. Daisy knew that Jana was letting her imagination run wild. Jana said she would be meeting Kevin at Jimmy's, and they would welcome the New Year together with a midnight kiss.
Daisy began to cramp and grabbed her belly. Jana timed Daisy's cramps and told Daisy that she was in labor. Jana said the baby was coming out, and Daisy had to get to the hospital right away. Daisy insisted on staying in the apartment. Daisy claimed that if she went to the hospital, Daisy would wind up in jail. Jana warned Daisy that she needed a doctor's care. Daisy rejected Jana's attempts to ease the labor pains. Jana insisted that Daisy do what was best for the baby.
Daniel and Abby were walking at night. They stopped for hot dogs from a street vendor. Abby said she had a few New Year's resolutions, which included dispensing random acts of kindness. Daniel said he wanted to focus on his art in 2011, as well as on Abby. Abby admired Daniel's resolve in dealing with the Daisy situation.
Daniel's phone rang. Daniel answered it and learned from Jana that Daisy had gone into labor. Daniel said that he would meet Daisy and Jana at the hospital. Daniel said that he would arrange to have the ankle monitor deactivated. Abby told Daniel that she'd go with him to the hospital.
Chloe returned to her bedroom at the Chancellor mansion. Esther asked why Chloe was home, and Chloe replied that she'd decided to skip the party at Jimmy's. Later, Esther approached Chloe again. Chloe was in her pajamas, eating ice cream. Chloe went on a tirade about Kevin's attitude toward Chloe. Chloe felt that Kevin had led her on. Esther said that she liked Kevin.
As Esther tried to cheer up Chloe, Chloe was filled with thoughts of the good times she'd shared with Kevin. Chloe liked those memories. Suddenly, Chloe jumped out of bed, leaving Esther to wonder where her daughter had gone.
Kevin entered Jimmy's with Allison. Allison went to order some drinks while Kevin spoke with Abby and Daniel. Kevin told Daniel that he'd changed his mind. Kevin said that he'd been wrong about wanting to adopt Daisy's baby. Kevin said that he wanted to keep Daisy out of their lives. Kevin thought that if Daisy's baby were adopted far away from Genoa City, his niece would be better off. Daniel embraced Kevin in gratitude. Kevin introduced Allison to Abby and Daniel.
Abby was happy for Daniel. Daniel asked Abby to go outside with him so they could look at the stars. Daniel wanted to feel like a human being again.
Kevin was trying to be sociable with Allison, but everything reminded him of Chloe. Kevin couldn't stop turning every conversation into a diatribe against Chloe. Allison thought that Chloe was a bitch based upon Kevin's comments. Kevin defended Chloe. Allison asked if Kevin was in love with Chloe. Kevin said no, but then Kevin apologized for ruining the date with Allison.
Kevin offered to call Allison a cab, but she told him to leave without her. Kevin walked out onto the street. Across the street, he saw Chloe. She was still in her pajamas. Chloe approached Kevin with a smile. Kevin asked why Chloe was in her pajamas. Chloe said she had needed to get to Kevin before midnight.
Chloe said that Kevin was her Ducky. Kevin didn't want to hear that. Kevin didn't want to be a movie character that was the leading lady's best friend. Chloe said that Ducky belonged with the leading lady. Chloe told Kevin that he was just what she'd been looking for in a man, including that he was her best friend. Chloe feared that Kevin hated her. Kevin said he didn't hate Chloe. Chloe asked Kevin to tell her what he was really feeling. Kevin said that he wanted Chloe. Chloe said she wanted Kevin, too. They kissed passionately.
At the jail, Adam told Leslie that Sharon had found Skye in Hawaii. Adam asked Leslie to make sure that Sharon could see him as soon as her flight landed. Adam was overjoyed that Sharon had come through for him.
Jack surprised Phyllis with a trip to New York for New Year's Eve. At the airport, Phyllis and Jack were stunned to see Sharon arrive at the gate. Phyllis asked Sharon what had happened in her search for Skye. Sharon told Phyllis she had a big story to tell. Sharon revealed that Skye's perfume had been sent to a Post Office Box in Hawaii.
Sharon confessed that she had flown to the island and found Skye was living there. Phyllis asked if Sharon had lost Skye since Skye was nowhere in sight. Sharon told Jack that she had seen Skye, and Sharon had spoken with Skye about her disappearance. Jack asked what had happened to Skye. Sharon told Jack and Phyllis that Skye had fallen into a volcano and died.
Sharon explained that nobody else had seen Skye, and Sharon's photo of Skye was lost along with her camera. Sharon asked Phyllis to write the story of Skye's death in Restless Style. Jack asked if Sharon expected Adam to be freed based on her story. Sharon declared that Adam had done many things wrong, but Adam had not killed Skye.
Phyllis thought the story was laughable and refused to write it. Sharon asked Jack if he believed her. Jack said that Adam had brainwashed Patty, so perhaps Sharon was under his spell, too. Sharon walked away disheartened. Jack wasn't sure what to believe.
Jack and Phyllis' flight was delayed. Phyllis joked about Sharon's crazy story. Jack declared that Sharon was not a liar. Phyllis thought that Sharon was a consummate liar. Jack believed that Sharon was confused. Jack said they needed to know the truth of what had happened to Skye. Phyllis was convinced that Adam had killed Skye in Genoa City.
Just before boarding the flight to New York, Phyllis received a call from Daniel. Phyllis learned that Daisy had gone into labor. Jack and Phyllis left for the hospital. Daniel arrived at the hospital before Daisy and Jana. Jana was in the car with Daisy. Daisy told Jana not to take her to the hospital because Daisy didn't want to end up back in jail. Daisy said that Kevin and Jana could not have the baby. Daisy demanded that Jana keep her out of jail.
On the way to the hospital, Jana passed by Jimmy's to tell Kevin that the baby was being born. Jana saw Kevin kissing Chloe. Daisy was confused by Jana's actions. Jana told Daisy to run off and take her baby. Jana said that she didn't care anymore. Daisy was perplexed, but Jana said that she was glad that everyone would live in terror with Daisy on the loose. Jana got out of the car, and Daisy drove off. Jana watched Chloe and Kevin kissing from across the street.
Sharon arrived at the prison and met with Adam. Adam was glad to see Sharon. Adam feared that Skye had hurt her. Thanks to Nick, Adam knew that Sharon had seen Skye. Adam thanked Sharon for saving him again. Sharon said she had failed Adam because Skye wasn't with her. There was no proof that Skye had been alive.
Sharon explained to Adam that while on the volcano hike, Skye had fallen into the flames. Adam thought it was a trick by Skye. Sharon said that Skye was dead. Sharon said that she had failed to prove Adam's innocence. Sharon said they had nothing to exonerate Adam. Adam remained confident that they would find someone in Hawaii who'd seen Skye while she was alive. Adam promised Sharon that 2011 would be their year.
Due to the extended New Year's holiday, CBS Sports coverage preempted the entire daytime lineup -- The Young and the Restless and The Bold and the Beautiful. This scheduling change was anticipated and there will be no "lost" episodes as a result of the scheduling change.
Regular programming will resume on Monday, January 3, 2011 and pick up where the Thursday, December 30, 2010 episode concluded.