This phrase can be called out after any action or word that violates some rule and is not allowed to be said or done in public. You can call 'Pigs in a Blanket' on anything that you think is inappropriate; especially after racial or ethnic slurs.
An asian man is sitting near you on a bus.
Doug: Did you hear the one about the Japanese guy and the three prostitutes?
Tyler: Pigs in a blanket, man.
Doug: Did you hear the one about the Japanese guy and the three prostitutes?
Tyler: Pigs in a blanket, man.
by TylerC November 23, 2006
by tylerc May 11, 2013