As made famous by the 2010 Usher song "Hot Toddy" featuring Jay-Z and Ester Dean, a "Hot Toddy" is a person with whom you conduct a sexual relationship under the implicit understanding that each participant may be maintaining a separate monogamous sexual relationship with another, all of whom who must remain unaware of this activity.
Tim has sex with Jeff's girlfriend Sarah one or more times without Jeff ever finding out, because Tim and Sarah have an implicit understanding that neither of them will take actions leading to Jeff finding out; Sarah is thereby Tim's Hot Toddy.
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