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The Fully Automated Nutcracker is a blue robot with a light purple oval shaped head and a red mouth. It has wheels as feet and is blue in color.
Sandy's bosses are coming to visit her to see if they should renew her funding. However, Sandy does not have an invention she thinks is worthy of them renewing her funding. She shows SpongeBob and Patrick some of her latest inventions, one of which is the Fully Automated Nutcracker. The flaw of the nutcracker is that it cannot crack nuts. It attempts to, but gives up and turns off.
It appears towards the end of the episode when Dr. Marmalade, one of Sandy's Bosses, takes out a banana and the robot turns on and peels it. Sandy's bosses are elated when the robot does this since they have been searching for a robot to peel bananas for years. The bosses renew the funding and take the robot back with them.