Translated: "Okay, Spanky."
A line from Little Rascals made famous by Gordon Lee, who played Spanky's kid brother, Porky. Lee's signature line, "Otay, Panky," came about because he had a speech impediment and couldn't say his K's and S's.
Currently thr phrase could be used as an affirmative reply when someone tells you something fairly obvious. It's a silly way of saying "okay."
Bob: "Don't walk in the steet because you might get hit by a car."
Fred: "Otay, Panky"
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