The story begins with Bugs Bunny reading the classic fairy tale Hansel and Gretel. Witch Hazel plays the witch who tries to cook and eat the children (her cookbook has such recipes as "Waif Waffles", "Moppet Muffins", "Kiddie Kippers", "Children Chops", and "Smorgas Boy"). Bugs witnesses Witch Hazel coaxing the children inside and goes in her house, disguised as a truant officer, and saves the youths from her clutches. The children both turn to Hazel as they leave and say in a thick German accent: "Ach - your mother rides a vacuum cleaner!"
However, once Hazel realizes that Bugs is a rabbit, she tries to cook him instead, using a carrot (hollowed out and filled with a sleeping potion) as a lure. Bugs eats the carrot and falls asleep and Witch Hazel puts him into a roasting pan to make rabbit stew.
After the witch goes down into the basement to get something else, a character resembling Prince Charming enters the house and kisses Bugs' hand. Bugs wakes up and says: "You're looking for Snow White. This here's the story of HAHHN-sel and Gretel", and the Prince takes his leave, confused about how Hansel is pronounced. Then Hazel emerges from the basement and Bugs races down a nearby hallway to escape, but is trapped by Hazel. As she approaches, Bugs quickly finds a grenade full of her magic powder (in a case marked with the message "In case of emergency break glass") and uses it to transform her into a gorgeous female rabbit who has a feminine voice but still has Hazel's laugh.
As he gets ready to leave with the bunny beauty, Bugs looks at the audience, breaking the fourth wall, and comments: "Ah sure, I know. But aren't they all witches inside?".
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