During a conversation with someone that unintentionally says a comment that could be taken into sexual context. Referring to what a female might have said during the "act", but actually has nothing to do with sex in any way. Usually unnecessary.
(During the milking of a cow)
Boss: You're not doing it right, you gotta grasp it from the base, then squeeze all the way to the tip.
Benny: That's what she said!