She said that Sarah Huckabee Sanders takes the truth and burns it and uses the ashes for a "perfect smoky eye"The joke was actually in the part I don't really remember. It was about her relationship with truth, and how she disposes of the truth utterly, and, in suppressing truth, she turns it to an advantage with no sign, no "tell." The "perfect smoky eye" part was like saying she has a perfect poker face. Instead of defending Sarah from the actual premise of the joke (That she lies like a pro, literally) conservatives proved they deserve to be labeled with their own term of "Snowflake". The same people who say that political correctness is ruining their America, got all butt-hurt that Michelle Wolf joked about Sarah's LOOKS. As if saying she has a "perfect smoky eye" is saying she looks bad in the make-up she chooses. That part. The make-up part was actually a compliment of her appearance. The conservatives let the liar-liar -pants-on-fire part of the joke slip past and focused on the physical appearance part, proving they can't even do fake outrage right.
You should look up the performance on YouTube, and you may also want to hear Michelle Wolf being interviewed about it later on NPR with Teri Gross on "Fresh Air." She explains exactly she would not go back and change the things she said, even though she seemed to "bomb" in the room. (She also roasted the press in the room, as every comedian does at the White House Correspondent's Dinner.)