[He really does not understand Niles or what his preoccupation with Leo not telling him something is.]

I've been here less than a day. I think you can forgive him for not informing you. Did you expect that he would seek you out immediately after my arrival when he was busy cleaning the temple? I can only assume you didn't help with that, otherwise you would have run into me or he would have had the opportunity to tell you.

[His hand is still firmly planted on Niles's chest.]

No, that certainly won't be a problem.