Final answer:
The quote is from the story 'The Cask of Amontillado' by Edgar Allan Poe, where the character Montresor describes his cunning plan to avenge himself against Fortunato.
Step-by-step explanation:
The quote “Oh, you would have laughed to see how cunningly I thrust it in” is from the literary work “The Cask of Amontillado” by Edgar Allan Poe. In this short story, the character Montresor narrates how he avenges himself against Fortunato. The quote is significant because it showcases Montresor's cunning and describes his method of trapping and killing Fortunato in the catacombs.