The way Michael as looking at her and repeatedly talking about how the way to start find their way back together was honesty ... and she didn't catch a clue that maybe he knew she had sex with Drew? While she told Drew she didn't think anyone would have seen them ... she didn't know that James had seen them smooching. I'm assuming Michael was waiting to see for Willow would be honest about sleeping with Drew at which point he would tell her about he got roaring drunk and ended up sleeping with Sasha in response to what he saw.
I suspect since she didn't speak, he won't tell her about Sasha ... until she turns out to be pregnant.
Karen L.