The 46-year-old was spotted shopping at upscale centre The Intersection Paddington in Sydney on Sunday.
The high-end outlet includes brand boutiques such as Alice McCall, Camilla, Dion Lee and Zimmermann, and Karolina looked to be indulging in some serious retail therapy.
The Serbian reality star looked stylish in a pair of white skinny jeans, nude crop top and yellow-and-white printed duster coat.
Karolina accessorised with a statement blue cross necklace, a stack of bracelets and a pair of polarised sunglasses.
She wore pink platform wedges and slung a grey, studded bag across her body while carrying an array of designer shopping bags from her buying expedition.
The controversy between Karolina and Lyn began when MKR participants got chatting about first impressions at Pat and Bianca's instant restaurant Harlequin.
Speaking about her initial impression of Karolina, beauty queen Veronica admitted: "I was a bit blown away, I was a bit scared. You're a very tall woman, you're extraordinarily tall."
But it was 60-year-old Lyn's comment that stunned the nation with the South Australian chiming in: "It's true - I thought you were trans."
Visibly upset, Karolina took the label as a slur and hit back: "You did point out something that I'm really sensitive about. If you think I'm going to go 'haha, thank you Lyn!' you're wrong doll! You've hurt my feelings."
The fiery Balkan told fellow competitors Lyn's remark "hurt my core".