diff --git a/README.md b/README.md
index 3553f8f1..131cb9c8 100644
--- a/README.md
+++ b/README.md
@@ -1,14 +1,15 @@
 proxy.py
 ========
 
-Lightweight HTTP Proxy Server in Python.
+Lightweight HTTP, HTTPS and WebSockets Proxy Server in Python.
 
 Features
 --------
 
 - Distributed as a single file module
-- No dependency other than the Python standard library
-- Support for http, https, websockets request proxy
+- No external dependency other than standard Python library
+- Support for `http`, `https` and `websockets` request proxy
+- Basic authentication support
 
 Install
 -------
@@ -17,24 +18,27 @@ To install proxy.py, simply:
 
 	$ pip install proxy.py
 
-This will add `proxy.py` inside your python environment bin folder.
-
 Usage
 -----
 
 ```
 $ proxy.py -h
-usage: proxy.py [-h] [--hostname HOSTNAME] [--port PORT]
-                [--log-level LOG_LEVEL]
+usage: proxy.py [-h] [--hostname HOSTNAME] [--port PORT] [--backlog BACKLOG]
+                [--basic-auth BASIC_AUTH] [--log-level LOG_LEVEL]
 
-proxy.py v0.1
+proxy.py v0.3
 
 optional arguments:
   -h, --help            show this help message and exit
   --hostname HOSTNAME   Default: 127.0.0.1
   --port PORT           Default: 8899
+  --backlog BACKLOG     Default: 100. Maximum number of pending connections to
+                        proxy server
+  --basic-auth BASIC_AUTH
+                        Default: No authentication. Specify colon separated
+                        user:password to enable basic authentication.
   --log-level LOG_LEVEL
-                        DEBUG, INFO, WARNING, ERROR, CRITICAL
+                        DEBUG, INFO (default), WARNING, ERROR, CRITICAL
 
 Having difficulty using proxy.py? Report at:
 https://github.com/abhinavsingh/proxy.py/issues/new
diff --git a/proxy.py b/proxy.py
index 2e71ad38..054aadea 100755
--- a/proxy.py
+++ b/proxy.py
@@ -294,13 +294,14 @@ class Connection(object):
         self.what = what  # server or client
 
     def send(self, data):
+        # TODO: Gracefully handle BrokenPipeError exceptions
         return self.conn.send(data)
 
     def recv(self, b=8192):
         try:
             data = self.conn.recv(b)
             if len(data) == 0:
-                logger.debug('recvd 0 bytes from %s' % self.what)
+                logger.debug('rcvd 0 bytes from %s' % self.what)
                 return None
             logger.debug('rcvd %d bytes from %s' % (len(data), self.what))
             return data
@@ -505,14 +506,9 @@ class Proxy(threading.Thread):
 
             try:
                 self._process_request(data)
-            except ProxyAuthenticationFailed as e:
+            except (ProxyAuthenticationFailed, ProxyConnectionFailed) as e:
                 logger.exception(e)
-                self.client.queue(PROXY_AUTHENTICATION_REQUIRED_RESPONSE_PKT)
-                self.client.flush()
-                return True
-            except ProxyConnectionFailed as e:
-                logger.exception(e)
-                self.client.queue(BAD_GATEWAY_RESPONSE_PKT)
+                self.client.queue(Proxy._get_response_pkt_by_exception(e))
                 self.client.flush()
                 return True
 
@@ -547,6 +543,13 @@ class Proxy(threading.Thread):
                     logger.debug('client buffer is empty and maximum inactivity has reached, breaking')
                     break
 
+    @staticmethod
+    def _get_response_pkt_by_exception(e):
+        if e.__class__.__name__ == 'ProxyAuthenticationFailed':
+            return PROXY_AUTHENTICATION_REQUIRED_RESPONSE_PKT
+        if e.__class__.__name__ == 'ProxyConnectionFailed':
+            return BAD_GATEWAY_RESPONSE_PKT
+
     def run(self):
         logger.debug('Proxying connection %r' % self.client.conn)
         try: