[UPDATE BELOW] At at a time when any decent baker should have been selling racially harmonious black and white cookies by the truckload, one Greenwich Village bakery popular with celebrities and shows like Sex and the City has outraged neighbors by selling a "Drunken Negro Face" cookie in, um, "honor" of President Obama. [Video below.] A shocked customer tells My Fox NY that Ted Kefalinos, proprietor of Lafayette French Pastry, asked her, "Would you like some drunken negro heads to go with your coffee? They're in honor of our new president. He's following in the same path of Abraham Lincoln; he will get his."

Later, her friend stopped by the bakery and said Kefalinos corrected her about the name of the cookies—they're actually drunken "N-word" cookies. She says the backwards baker then repeated the dark suggestion that, like Lincoln, President Obama "will get what's coming to him." Go Secret Service, go!

And it gets worse when Fox's Arnold Diaz goes into the store with a camera and microphone to confront Kefalinos, who suddenly makes Joe the Plumber look like a Rhodes scholar. "I called them Drunken Negro Heads. What's the problem with that?" Kefalinos asks the newscaster with a smirk. "On Inauguration Day I thought it would be cool to change the name to Obama Heads. I just changed it for the day." We suppose Burning Cross Bananas Foster was too complicated to mass-produce.

Kefalinos denies intimating that Obama would be assassinated, and insists that the cookie is "not unflattering. I think it's a fun face... And anyone who says anything else should be ashamed of themselves." Besides, nobody got upset about the "Dead Geese Bread" he sold after the recent Hudson River plane crash. (We're NOT making that up.) Also, Kefalinos insists he can't be racist because, for one thing, "my brother-in-law, he's Cuban." Below, behold the breathtaking train wreck of racist ignorance.

UPDATE: We just spoke with Kefalinos on the phone and he remains utterly oblivious, telling us, "This whole thing was blown out of proportion." He says he's sold out of the "Drunken Negro Cakes" and doesn't plan to make anymore, despite the fact that many customers have been requesting them (he claims). When asked whether he understands that most African-Americans find the word "negro" offensive, Kefalinos explains, "It's a French word. It comes from the French."

Community Board 2 was quick to call for a boycott of Lafayette French Pastry, to which Kefalinos responds, "I'm sorry they feel that way because I was trying to do a nice thing." Not seeming to grasp in any way the degree of outrage he's sparked, he added, "I did it and that's the end of it and it's over."

UPDATE 1/24: Now Ted Kefalinos apologizes: "Seriously, from the bottom of my heart, it was an innocent design I created. It was nothing more than just a piece of art."