Question : Hyper-V V-Switch VM to VM Traffic

I'm aware of the differences in Hyper-V Virtual Switches (External, Internal, Private).

What I am not clear on is how VM to VM traffic on the same HyperVisor is handled through an 'External' V-Switch. For instance.

VM #1 Hosted on Parent Hypervisor1
VM #2 Hosted on Parent Hypervisor1
Both have Synthetic NIC connected to an External V-Switch
Both are on the same subnet

So would traffic from VM #1 to VM #2 flow out onto the physical LAN and back in or would it be switched at the V-Switch directly to VM #2.

I know that is how an Internal V-Switch works, but I'd prefer not to have two NIC's per VMachine just for that purpose.

EDIT: One more thing. Are V-Switches VLAN aware?

Answer : Hyper-V V-Switch VM to VM Traffic

Found my own answer.