Hahahah, awesome, classic denial! *g* I love how faux-rational he is about it, all "hmmm, this peasant is vexing and a study in contrasts! further research is required! for strategic reasons only, of course" and how this has nothing whatsoever to do with him enjoying being touched so impudently, oh no!

But apart from the slashy giggles, you've got so many lovely descriptions going on in here... the attention to detail in those glimpses of Merlin's reverence with the clothes, and how closely Arthur must be watching to catch that; the comparisons with previous servants and with what's proper, even while he's so clearly intrigued with this chap who's obviously clueless about how he's supposed to act, and the hilariously consternated snotty air of "how dare he lay his hands on me" - this is such lovely characterisation, and much more than campy fun. Beautifully done! *applauds*