Before this week’s challenge was doled out, the remaining designers wrestled with runway drama of a different kind. As the winner of last week’s challenge, Zulema was given the option to stick with her model, Rachel, or trade her in for another winsome waif. In full diva mode, Zulema requested a walk-off—a bold move that shocked the group and ultimately infuriated Nick, whose model, Tarah, she chose. (Nick would therefore work with Zulema’s former model, Rachel). From there, Heidi Klum posed a question to the contestants: What drives your creativity as a designer? Inspiration was the theme of this week’s challenge, and a visit to Michael Kors’s studio would explain all.

After describing the inspiration behind one of his upcoming collections, Kors handed out digital cameras and instructed the contestants to spend one hour scouring the streets of Manhattan for their own muses. Andrae took a snapshot of dirty gutter water, Santino photographed graffiti, Kara enthused over signage, Chloe focused on geometric buildings, Daniel V. shot a single orchid, Zulema snapped a picture of an woman in traditional African dress, and Nick—still brooding over the loss of Tarah—reluctantly took a picture of a pattern he spotted in a fabric-store window. But a surprise was waiting for them back at the studio, when Tim read all seven the riot act, telling them that their work had been lackluster over the past several challenges and it was time for them to rally. The group humbly proceeded to shop for fabrics, then returned to the workroom to finish their creations and, the next day, present them to Kors, Klum, Nina Garcia, and guest judge Jay McCarroll, last season’s winner.

On the runway, Daniel V.’s simple photo blossomed into an elegant haute couture ensemble (shown)—a billowy silk top and stretch tweed skirt that won the hearts of the judges and, in the end, the challenge. But he faced some stiff competition from Andrae, who transformed an unsightly inspiration shot into a stunning bias-cut beaded gown. Respectable but not remarkable showings included Chloe’s strapless dress with geometric-grid pattern and Nick’s navy striped top with fishtail skirt. (Even though he continued to sulk for much of the episode, Nick eventually found inspiration with Rachel, who, under Nick’s tutelage, glided down the runway with a newfound ease.) Although Santino was finally listening to the judges, he nonetheless failed to impress them with an unflattering, rather oddly embellished dress (inoffensive but also ineffectual). But the dress was doomed before it ever hit the runway when Santino purchased the same (very distinctive) fabric last year’s contestant Austin Scarlett had used to create his notorious Grammy gown (parody, perhaps?). Worse was Kara’s dull black tube dress festooned with yellow-and-black sash (get it, “No trespassing?”). But at least it was well-made, which was more than anyone could say for Zulema’s equally unimaginative creation, which was unfinished and ill-fitting—a misstep that got her Auf’d, confirming, especially for Nick, that what goes around comes around. —Jennifer Ciotta