Is the piece of dialogue natural?

Hi. Please help me.

I joked with a friend that I would try cocaine. A week later when I met him again he slipped me a small bag of white powder. I looked at him and said:

Me - "You know I was just joking about the cocaine, right?"

Him - "You were?"

Me - "Yes."

Him - "So you don't want it?"

Me - "No."

Is the underlined piece of dialogue correct and natural here?