After obtaining the key during the second visit in the main house, go up the stairs on the right side and go to the children’s room. There, inspect the lamp on the table and turn it so that you look under the lampshade. Press the button located there to extend the ladder from the ceiling. Climb up and open the closet in front of you.
There is another cassette that you can use to recreate a room next to the break room. After the tape starts, you will be moved to another room, which you will return to shortly during the main stream. This time around, things will be different.
After the end of the movie, when Lucas leaves the room, take the candle to the clown, then go to the next room and turn right where the cake is. Your candle will be turned off by the sprinklers, but don’t worry about that just yet. Come to the test to have your executioner talk to you.
Return to the place where you started. There is a toilet next to it, then assemble the telescope. To clean it, go down the corridor next to the baking room to get to the sprinklers. Standing in front of them, use the telescope and go through it.
Now look through the telescope at the TVs in the next room. You should notice three shapes. You can now move on to the castle with the white box with the red bow. It is located in the room with the cake. Set the characters in the correct order.
Only through a clean telescope will you be able to see the symbols you need…
… which you will use to open this lock.
This way you will open the box and get a straw doll. Go to the kitchen and start the gas stove, then interact with the doll on the fire. This way you will get a mannequin finger. Now light the candle and go straight to the TV room where you will light the string on the door. This way you will get to the room with balloons.
Among the gray balloons you should find one yellow, not inflated. Take the item and go with it to the main room, where gas is coming from the pipe on the right. Use the yellow balloon to inflate it. Go to the room with the cake and take the key out of the barrel on the right.
Place the lit candle on the cake
Now approach the clown dummy and perform further interactions: a finger, a feather and a barrel obtained from the barrel. The clown will start moving and after a while he will grab your hand and write LOSSER on your skin.
This is the password for the next lock.
Return to the balloon room and look left at the end. There is a lock on which you must set the password you just received.
You can find a lock on the door in the balloon room.
When the room is unlocked, you will receive a valve holder. Go to the cake room and immediately after passing through the sprinklers, turn around and look to the right. On the pipe, use the object you just took.
Place the valve holder.
Now go to the kitchen one more time and light the candle, then go back to the cake and place it on top of it. The dough will explode and start a fire that sets you on fire. There is nothing else you can do about it, so just watch the scene until the end.
Attention! If you want to prevent Ethan from dying at the end of the game, you should solve this puzzle a second time, but in a slightly different way. Just skip the piece with the clown outfitting various items and immediately enter the password for the lock in the room with balloons. That way, the key in the barrel will stay in place and Ethan won’t burn out when he has to solve the same puzzle.