She'd tell me how she'd handle the backhanded compliment by smiling and pretending she was receiving a genuine compliment all the while ignoring their attempt to be insulting. After all, it's the way an insult is received that makes it an insult. You can't really give offense unless someone takes it.
Portia de Rossi (2011). “Unbearable Lightness: A Story of Loss and Gain”, p.81, Simon and Schuster