It wasn't just all a hangover-induced hallucination, as we found out in New Girl Season 3 Episode 21: Nick and Jess are most definitely actually broken up.
This will, of course, bring great turmoil to the loft, so Jess and Nick decided to keep a secret the only way they knew how: by dressing up as a cat and taking someone else's prescription medicine, respectively.
Was it a good idea for them to break up? Will it stick? Will the show be able to get by if they just start dating other people and stuff?
The answer to all of these questions is obviously "no." But to know for sure (and to check out Winston in full-on Tom Wolfe/ Colonel Sanders-style dress whites), you'll have to watch New Girl online.