Can any of you tell me the meaning of this [NSFW] joke?

I don’t get it, so here goes!

Two friends, a man and a young lady were sitting around in a living room flirting with each other. The girl said:

” Oh I love your beard it looks so sexy, can I touch it”

The guy replied:

” Sure thing knock yourself out beautiful ! ;) ”

After a while the guy said :

“All right now  it’s my turn to play with your beard! ”

Confused the girl said : ” But I don’t have a beard! ”

To which the guy replied: ” Oh I’ll find a hairy ’ alternative’ somehow! :) ” So he started running his hand between her thighs till he reached the inside of her panties. After a couple of minutes of petting her little hairy kitty the girl pushed his hand away then slapped him.

The guy said: ” Why?! I didn’t say or do anything to you while you were touching my beard!!”

To which the girl said: ” Yeah while I was doing that I didn’t stick my finger in your mouth! ”