4th panel - "I'm raising my hand. That way you know I'm referring to your height and not other things I could be referring to."
6th panel - "Now hug. Now kiss. Now..." "Grace!" "What?"
One could naturally assume that Grace just assumed that Elliot's first reaction was a hurtful one based on later reactions, but then you'd be assuming an assumption, and that's a lot of conclusion jumping.
There are a couple of things about the mall form that have changed for this transformation. In particular, the neckline on the shirt is a little lower, the skirt is even shorter, and though it may be a little difficult to tell in the comic itself, there is lipstick:
My explanation for this is Elliot's intentions affecting the results, the makeup if nothing else. That, and I'm more comfortable drawing lips in this style now, but mostly the intentions thing.