Karring - "Not just powerful..." He responds to Asch's compliment, "I'm also, untouchable..."
Kathy - "...and also impossible to heal, when in danger." Kathy, giving a bit of negative feedback, "Oh, and the it's Katheron, by the way. Kathy's just the more and simple form that rolls off the tongue easier."
Karring - "Yeah, don't mention it, Kat." Karring scratching his head in embarrassment before turning his attention to Sakura who seem to have noticed her stare. "Oh, hey there lovel... oww..."
Kathy pulling him by the ear, before hissing some soft words through them.
Kathy - "Small words, moron; SMALL WORDS."
Karring - "Alright already, way to kill a boner, man." rubbing his ear before trying to address Sakura properly. "Anyway you must be Zeta I presume." Although his attention was still focused on Sakura, she probably assumed he's mistaking Sakura for Zeta.
(The part where Kathy's saying Karring's impossible to heal is sort of a reference to the Disgaea 2 ninja's dodging ability where healing spells and buffs tend to miss when the healer's hit stats were low. But in this case it's merely a joke on Karring's ability to dodge anything a third of his speed.)