It was a parody of the Cyrano de Bergerac story. I don't remember the muppet counterpart's exact name. Cookie actually said, "Nobody knows" when referring to how the story ends. This prompted the Cyrano characters to step out of the story and chase Cookie in the living room. He said, "You said NOSE!" Cookie said, "No, no, me said KNOWS, not NOSE!" "You said it again!" the Cyrano character screams and chases him some more.
If I remember correctly, the Cyrano character didn't have an actual sword, but rather used his nose as a sword (which was just as long). I did find this skit a little surprising because it showed a male muppet (Cyrano character) physically threatening a female muppet (the Queen). It was an excellent skit though. I remember the Cyrano character appearing at least one other time in a street scene.