Californication season 7 episode 3 opens with Karen freaking out about Hank's new son and baby mama. And to make things worse, "she's a ridiculous fucking MILF," yells Karen. Things just keep getting worse and worse for poor Karen over the years and that's what she gets for being in love with a mess of a man like Hank Moody. She then tells Hank that he needs to figure out how to tell his daughter that she has a brother she never knew about.
Next, Hank goes to pick up his new found 21 year old son Levon (Oliver Cooper), who was born when his mom Julia (Heather Graham) got pregnant during her brief affair with Hank and didn't inform him about his second child until now.
Meanwhile, Hank is going to get his first episode assignment, much to the dismay of coworkers,Terry and Hugh, to write episode 3 of "Santa Monica Cop." As Hank fumbles through an episode pitch, Levon stumbles in with the lunch order, which he messed up. He angers the boss Rick Rath on his first day. Hank learns that Levon likes Rath's assistant, Melanie, and wants Hank's advice on how to get her to like him. Rath invites Hank to help him cast "crack whores." Rath had stepped out of the casting office and an actress, who really wants the part, makes Hank touch her sexually. Rath finds out from Terry and asks Hank about the situation. "Well technically she fingered herself with my finger," Hank says nonchalantly per usual. Levon has totally screwed up his chance with Rath's assistant after he accidentally sexually assaults her. Julia makes Levon apologize to Melanie and bring cookies. Then Rath hits on Julia in front of the entire staff and takes her on a tour of hte place.
Hank meets up at a bar with Charlie, who is complaining about his privates. Marcy texts him to make him come home and Charlie begrudgingly leaves. Hank then calls Karen to try to make amends. Karen isn't really ready to reconcile yet, and asks him what he wants. Then she says, "you want your ego stroked." No, what Hank wants is guidance that he can do what he has to do. Then Karen says the only good line in the show, "That's what defines you, how you deal with it. You don't get points for wallowing."