Just tell your neighbor - "You only WISH you were this cute" ...
I wouldn't start anything if you're all friends - he probably doesn't know it's hurting your feelings and if anything - just tell him just that -
I know what you mean about the 'liquid' courage - try to keep that to a minimum so you dont ruin a good relationship.... most people will respond if you tell them nicely it bothers you even though you know they may be joking