The Motoko and Kuze did they ever take note of each other

in 2nd gig the major constantly says she knows kuze. Kuze says when they meet in ep 25, "how many times have we met? 3, 4?" but continues to ask who she is. i would have thought that meant he acknowledged who she was... i guess not though.

She asks him if he can fold cranes left handed, he says yes with software, then asks if she can, to which she says, she has learned to. They hug after this and does that mean that they acknowledge that they have been acquainted since childhood.

To make matters more confusing, the major on the helicopter ride back with kuze in custody randomly exclaims, "I know him." Really now what is the deal... Did she not know before, did they never affirm their identities with each other. The external memory bit... Did Kuze give up his memory of his childhood to a storage lady... Want to know how that end ties up. Any answers from manga or opinions on this