The Inner Courtyard is recognized by the guillotine, a few other stores, and a large hall at the back.
There are three major tasks: finding the entrance to the forgotten chapel, grinding a bead of glass, and defeating the crystal golem.
On the right is a hardware store, which is guarded by archers and a stome golem. Of note is the second floor fireplace, which leads to a magic grindstone.
To the left is the guillotine, the tavern, and a path that eventually leads to a large room. It also leads to the mortuary.
The entrance to the forgotten chapel is behind the stained glass behind the guillotine. The area has around four archers, which can be a problem for the paladin, but are otherwise easily dispatched.
Smash the windows and jump through. There's a marked wall, which can be pushed to reveal a secret tunnel.
The large room at the back of the courtyard has an illusionary wall, but you can't see through it until you have an appropriate item.
In the mortuary's second floor, there's a button next to a bookcase. Press it to open the bookcase, which leads to a path that leads underneath the guillotine.