I was finally able to replicate the issue by idling at 220-225/normal operating temp and having someone rev the engine slighty with the A/C on. The temp began to creep up to 240/middle line on the gauge.
There was alot of clicking sounds, which we assumed was the car trying to turn the fan on, but the fan never came on.
Thanks to all that pointed this out and the reminder that I can review engine temp in the lcd driver screen. Hopefully my extended warranty will cover the repair.