After solving the cue light puzzle and setting up the Hansel and Gretel play, climb down the ladder. Explore the stage area. Go in the forest and follow the path towards the wooden house.
You arrive at the cottage. Examine the trunk on the far side. This is a PUZZLE
Cottage Chest Puzzle Solution
The panel on the chest has painted square tiles on it which you must rotate to form an image.
Easy Puzzle Level - This is a 4x4 puzzle, sixteen squares total
Normal Puzzle Level - This is a 5x5 puzzle, twenty-five tiles total
Hard Puzzle Level - This is a 6x6 puzzle, thirty-six pieces total
Each block has three possible sides.
Hints to help you solve the puzzle:
Top left corner has a sandcastle and shovel
Top right corner has wooden boat
Center Right has a beach ball
Most of the center of the puzzle consists of a girl in a red dress holding a doll in a green dress.
If you are not good with jigsaw puzzles and stuff, refer to the image below to see how the final picture looks like:
The chest opens. You receive:
Blackboard Eraser
as well as:
Poem Fragment 2
Nowhere left for you to run
Every fault laid bare in the open
Along with your skin, splayed from within.
Once the monster has his fun.
Once you close your journal, some dolls and their shadows appear. Run out the door and off the stage. The Hansel and Gretel set will collapse behind you. Exit the theater, go back to the stairwell, and climb the stairs up to the second floor of the orphanage.