I think Twinkle seems to have over-reacted about the term nautanki. In fact her over-reaction and response to Panchi's words would be considered as "nautanki" as the meaning of the word means "melodrama". According to the English dictionary "melodrama" means "exaggerated language or behaviour or an occurance suggestive of this". This word in itself is not a derogatory or bad word but it should be taken in context of the situation in which it is said. According to the famous Indian journalist and writer Shekhar Kapur it is described as:
December 23, 2007 | 01:10 AM
The Art of Nautanki
Yes, the ART of Nautanki. This much abused word is actually a folk art form that has been prevalent in our culture for over a thousand years. And in most other cultures in Asia. A folk art form of the theatre. Usually performed by traveling troupes of actors, it comprised the telling of stories using all the nine Rasaa's of emotions as described in various ancients texts , including in Yoga. Therefore the word - 'Nau (nine) tanki'.....
Nautanki would intersperse the telling of a moral tale with a heady mixture of melodrama, songs and comic interludes. Almost Brechtian in nature. Watching the Ramlila every year as a child I remember being moved, afraid, entertained and horrified all at the same time.
No wonder then that our films are so addicted to this art form and so popular. And another reason why Hollywood finds it so difficult to replace our own films. Which other theatrical, dance or cinematic art form will so seamlessly move from one rasa (emotion and genre') to another ?