KT has been drinking magic potions that turn him into different things, such as a shark, or in this latest instance, a toaster. Sefo points out the obvious flaw: toasters can't drink!
KT likes to talk funny. In case you have trouble understanding him, here's his dialog in proper English:
"I'd better drink another potion before I suffocate on dry land." "Yay, I'm a brave little toaster!" "Hi, Sefo! Do you want some toast?" "But what if I unplug first?"