Here's the episode plot summary:

CHRISTMAS OF KARMA—ALYSSA MILANO AND GIOVANI RIBISI GUEST STAR—Earl’s (Jason Lee) lifestyle in prison seems to be transitioning to his regular life outside of bars. He is having a hard time adjusting back to normal life and continues to hold a grudge with karma. With no job, no home and no money, Earl decides that his good deeds are not getting him anywhere, so he reverts back to his old bad ways. Earl's path to trouble starts when he sees that Ralph (Giovani Ribisi) is living a lavish life after conning an elderly woman. Randy (Ethan Suplee) can not handle Earl’s changed lifestyle, so he turns to Joy (Jaime Pressly) and many others to partake in an intervention on Christmas morning. Earl rejects his friends and tries to run from karma, but karma catches up to him in the shape of a car and Billie (Alyssa Milano). Eddie Steeples and Nadine Velazquez also guest star.

Source: SpoilerTV

Alyssa Milano on "My Name is Earl" (October 25, 2007)

Episode Description: When fellow prisoner Frank (Michael Rapaport) is dumped by his girlfriend (Alyssa Milano), Earl tries to bring the two back together again. Meanwhile, Joy and Catalina become entangled in a knotty situation. Cast & Credits: Jason Lee, Ethan Suplee, Jaime Pressly, Eddie Steeples, Nadine Velazquez

An excerpt from Alyssa's blog: Alyssa plays a girl with a shady past and a parole officer. After meeting Earl and learning of his karmic belief system, she decides to turn her life around. The character will not be a "love interest" of Earl's as of right now.

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