Outside, jump into the water and sail to the King of Red Lions. Get onto the boat, as there is nothing at all left to do, and set the wind south or west, whichever route you plan on using. There is no time to waste, after all - dawn always comes eventually!
Or does it? Apparently, eternal night was part of the curse mentioned by Valoo. You’ll notice as you sail by the half-dozen islands and the game clock rarely ever changes from night. Whew! That means you can sort of take a break and visit some islands. One thing - plenty of monsters are out now. Beware of them. They usually can be defeated via Boomerang or Bombs (they make a cannon on the boat).
Eventually, you’ll reach Outset Island.