How do you combat a hypocrite who is always spouting off bible verses?

It would depend on your definition of hypocrite. Churches are full of hypocrisy but people on the outside look at someone who believes that they are saved by grace, but still makes mistakes is a hypocrite. If I tell you that something is a sin, yet am willfully committing that same sin, that would make me a hypocrite, but the Word of God would still be true. Maybe it is that you don't spend time in The Bible, but the best way to answer someone that you think is a hypocrite is to have some biblical experience yourself, so may I suggest that you read James Chapter 3. This I assure you will help. Maybe suggest it to your friend as well.