The brilliant part is - technically he didn't lie - we just took his statement at face value. Kudos Larian! I still laugh about this whenever I think about it.
Shovel is just brilliant all round, but I agree this is a particularly nice touch. Though I didn’t actually get the joke until my second patch 9 playthrough as I’d always known the correct answer, and it was only then that I thought I’d try and see what happened if I went with what Shovel said instead. But now the way he says “good for burns” with such relish takes on a new resonance!