-( Story related, cannot be missed )-
Following her disappearance, Haru will continue to chase after Yui in this chapter. This will explore across the bridge to the southwestern part of the town and eventually lead up north. The bridge you'll want will immediately lead you into your first real Boss: Mr. Kotowari, the Scissor Spirit. This large hand with red scissors will chase after you to try and cut you. Some of the notes offered throughout the game suggest to offer him an arm, leg, and neck to satisfy him, so anything with something similar constructed will suffice.
You'll need to run away from the spirit, as you don't normally have anything like that other than your own. As you flee, you'll start to see that you're running through the same neighborhood that your friend was just in, and you'll need to backtrack through to where she awakened. Here, you'll find a doll, which you need to Interact with to satisfy the cutscene. You'll obtain a KEY ITEM as part of the cutscene and it will end thereafter with a journal entry and then a prompt to save.