Originally used by Mike Myers in "Austin Powers: Goldmember" as a joke about Dutch people. The whole movie (for whatever reason) is riddled with anti-Dutch jokes. This phrase was intended to highlight two of the popular stereotypes of Holland: marijuana and sweet confections. There really is no deeper meaning other than to play on these stereotypes. Since the release of the movie, the term has gained popularity as a general reference to marijuana use, and the "munchies" that may follow.
We've got the whole gang coming over for a smoke and a pancake.
Ruler of Lake Titicaca. Rumored to have a bunghole that gets very angry if it does not receive toilet paper. Cornholio the Great is often seen walking around with his shirt over his head and his hands in the air, chanting songs about his power, and his bunghole.
"I am Cornholio! You do not want to face the wrath of my bunghole, for I need TP!"
Butthead: Shut up, Beavis! (uh huh huh huh)
Beavis: Um, okay. (heh heh heh heh).