Season 20, Episode 7
Lisa invests in a new MyPod (iPod) and becomes popular at school, but she has a shock waiting for her when she receives her first bill. Meanwhile Bart befriends a Muslim boy, but Homer shows his ignorance of the boys faith by making constant references to terrorism.
The producers of the show are definitely treading a fine line with this sort of storyline and I feel are exploiting a loophole for expressing racism and race-hate via way of a popular animated show - my opinion.
An interesting bit of trivia here: there is a dream sequence in which Homer has a conversation with the Genie from Disneys Aladdin, - did you know that Dan Castellaneta voiced the Genie in the straight-to-video sequel The Return Of Jafar (1994).
See here for more details.
Notes & Screenshots: Lord Heath