Cold Steel is the eighth episode of the first season of the television series The Punisher.
Russo opens up to Madani about his past, Sarah shares her concerns about her son with Frank, and a decoy operation takes a turn.
Billy Russo visits his mother - a drug addict who abandoned him at birth - in a nursing home. Because of the abandonment, Russo terrorizes her and berates her while still caring for her medical needs.
Using the image from Frank Castle's rifle scope, Micro identifies Agent Orange as William Rawlins, CIA Director of Covert Operations. He then realizes that the camera feeds from his house are down. Worried, he demands Castle make sure that his family is safe.
Russo and Dinah Madani continue their relationship, comparing old scars and wounds. Russo reveals some of his past about growing up in the care system.
Arriving at the Lieberman residence, he finds out that Sarah had unplugged the Internet to punish Zach for his behavior, causing the cameras to go offline. However, she then admits that she undermined herself by allowing him to go out. Sarah asks Frank to stay for a glass of wine.
As part of her plan to discover who bugged her office, Madani and Sam Stein stage a conversation in her office that they have information that Castle is going to buy ammunition. They plan to catch him in the act.
Castle reactivates the Internet router in the Lieberman house. Unfortunately, this allows Micro to see Sarah drunkenly kisses Castle. While Castle gently rebuffs her advances, he returns to the hideout to find Micro extremely drunk.
Russo and Rawlins talk about the Castle information. They plan to intervene, but Russo refuses to use his Anvil personnel after the outcome of the operation to kill Gunner Henderson.
Madani briefs her team on the operation. However, only her and Stein know the full plan. They file falsified operational plans since she also believes whoever is bugging the office has access to the computers.
Micro and Castle talk about how they each met their wives. Micro comes to the decision that the only way back to his family is to involve Madani. Castle would be the witness she needs to take down Rawlins. Castle punches Micro out to stop him.
Russo hires several ex-Anvil mercenaries who are wanted for the murder of Iraqi civilians. He wants full deniability, and offers to pay them a large sum of money each.
Micro wakes up with a hangover but still thinks going to Madani is the best option. Sarah calls Castle for help with Zach. She is freaking out that she found a knife in his bag. Castle has a talk with Zach and manages to scare the kid enough for him to finally break down and admit that he is sad and scared.
Russo leads his mercenaries to the location, only to find United States Department of Homeland Security forces waiting for them. A gunfight ensues, with only Russo making it out. Sam gets the drop on Russo and unmasks him, but the shock of finding out who it is gives Russo the time to stab Stein. Russo gets away, but Madani finds Stein. He dies in her arms but could not tell her about Russo.
Zach and Castle throw a football around, and Micro comes by. Castle tells him to leave before Zach sees him, because it could lead to his family being killed. Castle promises to talk to Madani.
At her home, Madani sits in shock in the bath as Russo gently cleans Stein's blood from her.