This phrase can be called out after any action or word that violates some rule and is not allowed to be said or done in public. You can call 'Pigs in a Blanket' on anything that you think is inappropriate; especially after racial or ethnic slurs.
An asian man is sitting near you on a bus.
Doug: Did you hear the one about the Japanese guy and the three prostitutes?
Tyler: Pigs in a blanket, man.
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When your feces is the consistency of the chocolate spread 'Nutella'
guy 1:"Man, I've got Buttella' all over me."
guy 2: "Did you try wiping more thoroughly?"
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