It seems that all of the master samurai are out, so the apprentices get some sort of holiday. Walter, who conveniently watched you sleep, decides that the three of you (Isabeau preferring to be alone) should munch on the bakery's wares outside
Feel free to shop up at Q's and B's before going to the Mikado Castle area, then to the Castle City, then to the Bakery.
While Walter orders three loaves of kickin' bread, the baker gets to talking about some new genre of literature called "Literature". Jonathan, an avid reader, apparently hasn't heard of it, although the baker got it from the Black Samurai at a Sabbath.
After he gets onto some rather dark ranting, Walter finally manages to get us out of it. So, where to eat?
I suggest Lake Mikado. Well ... Awkward encounters, eh? We meet up with Issachar there. Do you wish to associate yourself with him? Is he an old friend?
- Alignment +1 = Yes, he is
- Alignment -5 = I don't know this man
The group parts ways there. So head along to the tavern. There, you can see several more Challenge Quests to do. One of them is the "Chagrin Slaying Competition", which basically makes you go into the Naraku and slay five Chagrin, which appear on the 2nd and 3rd Stratum.
That I shouldn't have to guide you through; note that they're weak to Electric (i.e. Zio). Meanwhile, there's another quest...