It's evident that "Dual Spires" is the "Psych" tribute to "Twin Peaks" from the first second of the episode, which features a close-up of a chocolate bunny and Shawn's comment to Gus that a woman in Washington had invented silent window shades back in the '90s (thank you Nadine Hurley!), which he declares a "triumph of innovation." 

Seconds later, Gus (AKA Lodge Blackman) opens a mysterious email with a copy of The Great Northern newspaper, featuring an article about an upcoming Cinnamon Festival in the tiny, secluded town of Dual Spires. Suffice it to say, the episode has so many references to its source material that it's virtually impossible to catalog them all. It also features appearances from a number of "Twin Peaks" alumni including Ray Wise, Dana Ashbrook, Robyn Lively, Sherilyn Fenn, Sheryl Lee, Catherine E. Coulson, and Lenny von Dohlen.

Even the music is inspired by "Twin Peaks," featuring a Julee Cruise dream pop cover of the intro, a near-dupe of the eerie New Age piano Laura Palmer theme, and a breezy light jazz-infused score. Like the synonymous town it's inspired by, Dual Spires appears superficially Rockwellian but is oozing with weird energy, and soon it becomes clear there are scandalous secrets bubbling under the surface. 

When a Laura Palmer-inspired murder of Paula Merral (an anagram for Laura Palmer) tears the townspeople apart, Shawn and Gus are on the job to "investigate, catch bad guys, and eat pie." The episode is a fantastic tribute to the David Lynch/Mark Frost iconic, groundbreaking series, but also works perfectly well as a standalone episode for anyone not familiar with the source material.