Sansa was on stage when Ned's head came off, and it probably rolled to a stop just in front of her. Post beheaddard, Sansa for once has an understandable and non-idiotic reaction, grieving by going comatose in her room. She even fails spectacularly at suiciding out a window. Oh well, it was the thought that counts. Eventually Joffrey comes for her, because for some reason the Lannisters still want the marriage to go through. This time though Sansa is a tad less enthusiastic about marrying him. Obviously, Joffrey doesn't tolerate defiance, and treats her like Robert treated Cersei -- by beating her. Ah, good old teenage domestic violence. Except Joffrey is such a wuss that he can't even properly beat a young girl, ordering his guards to do it.
At court, Sansa observed as King Joffrey handed out extremely harsh sentences. Thus, Sansa shouldn't feel so bad, because Joffrey is clearly not biased against the Starks. He's just extremely pro-beheading. Joffrey is also pro-choice, giving a singer the option of keeping his fingers or his tongue. Joffrey muses out loud about whether their kids will grow up to be stupid like Sansa. I know Martin wrote that conversation as sort of a joke, but I see it as a perfectly legitimate concern. If my daughter were to take after dumbass Sansa, she would betray our family and cause my death. Not exactly grade-A genes there.
Joffrey actually shows Sansa her father's head. Sansa actually shows some backbone and talks back to him, but Joffrey does not hesitate to proxy Chris Brown her again. Sansa really should just stab Joffrey in his sleep or poison his food. Open defiance will just earn her more Meryn backhands. As her face swells up from the beating, Sansa remembers Petyr's words about life not being fair. However, the universe seems to know exactly who deserves what. Sansa betrayed her family the first time, and her wolf was killed. Sansa betrayed her family a second time, and now she's just a shell of her former self, living in her own personal hell. It might be harsh, but she brought it on herself. What will the universe do when Sansa makes her next blunder?
Dany is starting to go crazy, obsessing over her eggs and dreaming about her dead brothers. Her baby Rhaego was born dead, with wings and a tail. It's clear what happened -- the kid was a half dragon half human. No wonder the Targaryens married each other. If Dany had sexed Viserys instead, maybe she'd be giving birth to a full blood dragon. Wouldn't that be cool!? It turns out MMD had to sacrifice Rhaego to keep Drogo alive, but MMD sucks at black magic and was only able to retain a vegetable version of Drogo. Vege-Drogo can't lead anyone because he can't ride, and just about all of his 40k khalasar immediately left, taking the horses with them.
Dany finally figures out that MMD didn't have the best intentions. "But I saved you!" Dany cried. That means nothing to MMD, because she watched all her people die. Besides, she had already been raped several times before Dany intervened. And it was doggystyle! Apparently, rape is even worse when its performed using a sexual position you do not enjoy. It makes perfect sense, as the Dothraki are accustomed to hot wedding dancers, not old ugly lamb women demon sorceresses. In the end though, MMD had the last laugh, because she basically killed both Drogo and his son. Dany is broken and miserable, and that night decides to put Vege-Drogo out of his misery.