(Strip Number 1398, Original Publication Date, 25 January 1989)
Panel 1: Since Liz has yet to be beaten over the head with the idea that to be loved, she has to bury her feelings and smile mindlessly all the time, she assumes that the reason she has no friends is that her nose is too big. We then see a tableau of her sizing up her nose in a convex mirror. Since the effect of said mirror is to magnify imagined flaws, she cries herself sick because it makes her nose look big.
Panel 2: It's only after the fact that she thought-bubbles that she should never look in a magnifying mirror if she thinks her nose is too large.
Summary: The problem is that she still thinks that her nose is too large when the truth is that she doesn't yet see Dawn as a friend. She also doesn't realize that the girls on the playground are Lynn's way of getting payback on the girly-girls of her youth for being intimidating strangers who simply HAD to hate her because she felt uncomfortable around them.