Move on back to the lower level and climb up the stairs to the east onto Upper Octagonia. You'll find the recipe book Building Butterfly Bric-a-Brac on the shelf of one of the bedrooms, while another has some pots you can smash for a Silver Ore.

Enter the house far to the west next and break the pots for 24 gold coins, then you can go check the orphanage. The item shop in particular has the Tough Guy Tattoo accessory. Go outside and head to the bottom level, where you should look for an alcove under the stairs. Further down is another house that has Garter in the closet upstairs. Back outside, head down the first set of stairs to the east and turn left to break the pot by the well. Head for the inn to the west and you'll find a Feathered Cap in another closet downstairs.

Save your game at statue first then enter the nearby house to get a Magic Beast Hide from the closet downstairs. Take the time to explore the town before signing yourself up. Walk up to the counter and Veronica will notice the Rainbough being offered as prize for the champion. Here is a town that takes pride in its annual masked martial arts tournament, as such it goes without saying that you're gonna have to be a part of it.