OK, to be fair to Steve, when I asked him about it this morning he says he didn't call me "Homely" he said I looked "Holiness," but he did admit that it meant the same thing.
He also says he was preemptively trying to make me feel better about my haircut, because he thought that I didn't like it. He was jumping ahead of me actually saying I didn't like it, I guess. All I said was that it was shorter than I'd wanted. I'll give him points for trying to help, even though he didn't!
He finally said that he'd never comment on my appearance again, so really, it's win-win for the both of us! :)