Dude, I understand your anger at someone that categorizes everyone of a certain skin color as a "N...."
A long time ago I had to share a ride back and forth to work, about 70 miles each way, with a guy who was perhaps the most bigoted guy I've ever come in contact with. He made the statement "my daddy always taught me, you don't bring n's or dogs to the supper table"..... I simply told him I knew about fifty black people that I'd have to dinner with me before I would have HIM to dinner.... He just laughed... but he toned it down a little bit. Not all the way, but it did slow him down some.
The point is, I managed to let him know what I thought about his racism without completely alienating him. I don't think it changed his opinion of other races, but perhaps over time he's remembered the conversation, like I have, and just MAYBE it made a little difference.
Those WERE about the longest three months or so of my life, however. He was simply a racist, AND a bully... but he found out that NEITHER of those tactics worked with me. But the bully thing is a whole 'nother story....