After defeating Everdred (or not) you learn that Paula was last seen in Peaceful Rest Valley.
Visit Apple Kid
Before you can go to Peaceful Rest Valley, you will need some kind of food that you are willing to give away. If you don't have any food, or you have some that you are not willing to give away, one of the cheapest options is to buy a Ketchup Packet for $2 from the magenta-haired guy in Burglin Park. You will also need $200, so withdraw $200 from an ATM (there's one in the Hotel). If you don't have enough, fight enemies in the edges of town until you do. Then go visit Apple Kid. His house is south of Polestar Preschool. Give him some food, then agree to give him some money. You need to give him the money to continue, so if you don't have it, fight enemies until there is enough in the ATM. After you give Apple Kid some food and money, his mouse will block the door. Talk to the mouse to get the Receiver Phone. This phone will allow people to call you no matter where you are. You can't make calls with it, though.
Before leaving Apple Kid's house, open the trash can to get a Broken Machine. You can't use this now, but it will be useful later. You can call Escargo Express to store it for now.
Go to Peaceful Rest Valley
If you still have the Cold Remedy that you got in Giant Step, you might want to bring it with you. You can also purchase Cold Remedies from a shop on the second floor of the department store. Or you can use Healing α to heal a cold if you catch one from the enemies ahead.
Other enemies in the area ahead are metallic, so you can buy Rust Promoters in Burglin Park to use during battles with metallic enemies to deal damage.
Go toward the east side of Twoson. On the way there, you will find a pizza place. Go inside and talk to the girl behind the counter. She will tell you the number for ordering pizza. This will allow you to call Mach Pizza and order a pizza for delivery. The pizza guy will be able to find you no matter where you are, except in a few locations that he can't reach.
Keep going east, past the bus station, and you will find a path to a cave. Before the cave, there is an area of the trees where a Magic Butterfly often appears. Try walking around the trees to find the area that generates a Magic Butterfly.
You might encounter Ramblin' Evil Mushrooms and Mobile Sprouts inside of the cave. You will meet a girl after the cave who will buy the mushroom from you if you get Mashroomized. In Peaceful Rest Valley, go east from the girl near the mushrooms, then go north. You will eventually reach a metallic pencil statue (or an octopus in the Japanese version) that blocks your path. You can check on it if you want to, but it won't make the statue go away. You have no choice but to go back to Twoson.
Get the Pencil Eraser
Back in Twoson, Apple Kid will call you and ask you to meet him right away. Apple Kid is in Burglin Park. Find Apple Kid near the lady selling bananas. Apple Kid will give you the Pencil Eraser, which makes all pencil-shaped objects in the vicinity disappear.
As mentioned earlier, it you still have the Cold Remedy that you got in Giant Step, you might want to bring it with you. You can also purchase Cold Remedies from a shop on the second floor of the department store. Or you can use Healing α to heal a cold if you catch one from the enemies ahead.
Also mentioned earlier, other enemies in the area ahead are metallic, so you can buy Rust Promoters in Burglin Park to use during battles with metallic enemies to deal damage.
Take the Pencil Eraser to the pencil statue in Peaceful Rest Valley and use the Pencil Eraser to get rid of the statue.
Enemies that you will encounter here are:
- Li'l Ufo (Weak to Fire. Metallic enemy. Use Rust Promoter.)
- Mobile Sprout (Weak to Paralysis.)
- Spinning Robo (Weak to Freeze. Metallic enemy. Use Rust Promoter.)
- Territorial Oak (Weak to Fire.)
After you get rid of the statue, go north. If you want the photographer to take your picture, go north past the bridge and walk along the riverbank. Then after you get your picture taken, go back to the bridge. After you cross that bridge, the path will be straightforward until you reach a slope, where you can go north or south. There is a Travel Charm to the north. After that, go southwest, then southeast when the path splits, then southwest at the next split, to find a Luck Capsule. Then go north until you can go west. After going west down the slope, go south.
After you go past the broken bridge, go southwest to find a Croissant. Then go southeast, past a slope, to find a Bomb. From there, go west past the slope (which just leads to a dead end), then northeast to find a bridge. Cross the bridge and go north.
Eventually, the path will split into northwest and northeast. First, go northwest to find a Hard Hat. Then go back the way you came, and at the split in the path, go east to where the path splits to the north and southeast, then go southeast down the slope. You will eventually see a cave opening to the southeast, but before you go in, stay on the slope and go southwest to find a Cup of Lifenoodles. Then go back to the cave entrance and go in.