How did Dwight Dixon acquire Charles Charles' watch?

Question

In Season 2 Episode 6 of Pushing Daisies, "Oh Oh Oh... It's Magic", Dwight Dixon learns that Charles Charles' watch was buried with his daughter, Charlotte Charles. At the end of the episode, he digs up her coffin, and finds it empty (without her in it).

In Episode 7, "Robbing Hood", he visits Vivian, views the newspaper clipping of Charlotte's funeral, and realizes that he recognizes Charlotte from the Pie Hole. Later he visits Lily, and comments to her about them burying her with the watch in a way that seems like he is still trying to find out where the watch is.

Finally, at the end of Episode 7, Lily sneaks into his hotel room, and finds both watches, his and Charles Charles', and the on-screen narration says that he stole the watch from Charlotte (39:08), and the statement that he did steal it from her is repeated on fan sites.

How did he get the watch? When did he "steal" it from her, if he hasn't seen her since before he realized that she was the daughter of Charles Charles (that is, since he saw her at the Pie Hole)? Did he find the watch in her coffin, and is that really stealing it "from her"? If so, why does it seem like he later is still trying to find out its location from Vivian?

I feel like there is a cut scene where he goes back to the Pie Hole and actually steals the watch from Charlotte that the narration is referring to, but we as viewers are never shown that scene.

Answer 1

Earlier on in the episode you can see Charlotte looking at the contents of a box with mementos, one of them a wallet she never got to give to her dad as well as letters from him and a beret.

Later on, the camera pans over these mementos spread out on a bureau (or a table) in Charlotte's room.

It ends with a red book, with the watch on top. A male hand is shown taking the watch.

Next we see Dwight Dixon in the elevator, looking at the watch.

While this is a very quick scene, combined with the voiceover it is clear that this shows that Dwight Dixon has broken into Charlotte's apartment and stolen the watch while the others were on the stakeout.