She Cooked the Bones of the Dog!

I was sitting on the deck having lunch a few minutes ago when Pablo, one of the biology students came out of the laboratory and exclaimed, “Oh my god, she cooked the bones of the dog!”
“Cooked the bones?” I ask.
“Yes.” He’s serious.
“What dog?”
Tuito is the camp dog. He’s handsome, of medium height, has short, mostly white hair with some spots of black and brown. He looks a little like the RCA dog.
“Tuito? He’s dead?” I’m shocked. I’m even more shocked that they would cook his bones.
“ No, he is there.” He pointed to the lab door.
Alejandro who speaks English pretty well laughed.
“Not the bones, the balls.”
Pablo, “Yes, she cooked the balls of Tuito.”
Ahh. “Cut the balls.” I get it now.
“It’s a good thing,” I say. “Tuito gets into fights, and he produces puppies. You need a job if you are going to have puppies. Remember that.”
“Tuito will be sad.” Pablo adds.
“Only for a little while, then he will forget he even had balls.”
They shook their heads as if to say, Ruby, you obviously do not understand.
Maybe not. I’m a womam and I’m an ESL teacher. What I understand is that pronunciation is important.