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Uncommon British slang. Slightly insulting way of saying "using your head" or "use your brains"

Mutton Jeff is Cockney rhyming slang for deaf, or someone who refuses to listen,

Jugs refers to jug handles, meaning your ears.

What's between your ears? Your head.
"Spot on. That's using the old loaf, mutton jugs."

Or in American English: "You're right. Way to use the old gray matter, meat head."
by Kingdragonfly September 26, 2019
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