So in this episode Jack gets caught with a woman (Ilene Graff) in the spare apartment above his bistro because he's covering up for Mr. Angelino, later in the episode he's relating the story to Larry and at that moment in walks in Daphne (Ilene Graff) and Larry looks at her and says "Don't tell me, Dustin Hoffman, right?"

So what exactly is Larry referring to? This episode aired March 1983 and Hoffman's film "Tootsie" came out in 1982, now if Larry is indeed referring to that movie then is he insinuating that Daphne looks like a man in drag?

I think it's a The Graduate/Mrs. Robinson (1969 movie starring Hoffman) reference because Larry thought Daphne was robbing the cradle trying to hook up with Jack, which of course was all just a big misunderstanding.

I guess it could be that but Jack and Daphne weren't that many years apart unless Jack Tripper was supposed to be in his twenties (which he wasn't) and in real life John Ritter was one year older than Ilene Graff.

I think it's a The Graduate/Mrs. Robinson (1969 movie starring Hoffman) reference because Larry thought Daphne was robbing the cradle trying to hook up with Jack, which of course was all just a big misunderstanding.

Say what??

They both looked similar in age. Just a few years difference at the most. Hardly a "robbing the cradle" situation.

Yeah I think it's a Tootsie reference. Larry's teasing Jack that Ilene Graff must be a guy pretending to be a girl (like Dustin Hoffman does in Tootsie), because otherwise why would Jack deny making it with her?

It's a clumsy reference, in any case.