The Chelsea Lately offices are far from professional.

In a clip from this Sunday's After Lately, comedienne Heather McDonald is mortified when her co-workers discover that Chelsea Handler, 36, has posted a photo of her vagina on Twitter.

"You guys, that has to come down right now. That is from when Chelsea pantsed me at the party. I didn't even know someone took a picture of that," she complains. "This is so not funny. I'm a mother! This is a total violation of my privacy."

Making matters worse, E! News host Giuliana Rancic takes credit for the racy image, which steals the spotlight from McDonald.

"At first I was mortified over it. But then I saw the picture and the vag is so cute," Rancic, 36, says when McDonald confronts her. "Then the press just ran with it so I was like, 'You know what? Hell yeah! I'm going with this thing.'"

"You kind of stole my vagina," McDonald, 40, tells her. "I'm just thinking about your reputation as a journalist and a newscaster. Don't you think people deserve to know the truth?"

"First of all, I'm on E! News, not 60 Minutes," Rancic laughs. "I think you should just drop the whole thing. You don't want to appear all desperate and pathetic, do you?"

After Lately airs Sunday at 11 p.m. (EST) on E!