"I think you're really cute ... you've got charisma," she told him, letting him through to the next round of auditions.
Flash forward almost a decade, and the pair - now 33 and 23 respectively - have been a couple since mid-2016, and are new parents to a son, Bear, born in March.
The footage of their first encounter lives on forever on YouTube, but when Norton brought up their unusual meet-cute, Payne couldn't hide his discomfort.
"I'm going to be sleeping here tonight if we go into these details, she doesn't like to talk about this bit," he warned of his absent partner.
Payne loosened up after the audition footage was played.
"When I got back to school, I got a real ribbing for winking at Cheryl. Cut to my 23rd birthday party and here we are together, and my friends are just mute in the corner," he laughed.
"And now we've got a baby, Bear. So it all makes perfect sense!"
Liam on Cheryl
In an interview on Nova last week, Payne reflected further on the "crazy" way he met the eventual mother of his child.
"It's so crazy, it's weird. I remember being interviewed by one of the people on X Factor afterwards, and they were asking about how she'd called me cute - I didn't really think anything of it at the time. Now I've grown up and ... we have a child."