Asian American Vignette #3

Two white couples are sitting together at a restaurant waiting for a third couple (Kevin, a white male and Lyn, a Japanese American female) to join them for dinner. One the men asks his partner "What time did you tell Kevin and his little lotus blossom to meet us here?" His partner frowns and tells him that the expression he just used is offensive. "You know her name. Why don't you use it?" He responds: "Oh come on! I was just being playful. Do we always have to be PC?"

Questions for the reader: If you were sitting at the table, would you find
the use of the expression "little lotus blossom" offensive? If so, why?