It should be stated that from this point forward, unless your Ofuda talismans do not fire all the way across the screen, do not collect anymore blue Ofuda power-ups. If you collect more blue Ofuda power-ups than you need, the stamina of the boss will increase and you will need to hit them more times in order to defeat them.
As soon as the second stage begins, you can find a blue crystal on the opposite side of the screen from the first lantern. Also, a new enemy, the Kasabe umbrellas, will begin appearing right away. They appear and surround Sayo-chan just outside of swiping distance with her purification wand. If they are allowed to stick around long enough, they will fold up and charge Sayo. Since they move with her as she walks, it's generally easy to get rid of them by moving diagonally and shooting at them. If you're headed down, walk down and to the right, or down and to the left, and shoot Ofuda at them to get rid of them either as they approach, or once they surround you.
After you cross one bridge, you will have the option of crossing a skinny bridge on the left, or a fat bridge on the right. After you cross them, there is a hidden blue Ofuda on the stone at the point where the stone paths reconnect. Even better than that, however, is a hidden double Ofuda, which you can find by shooting the ground below the lantern that sits to the right of the well that you come across. If you haven't collected the double Ofuda yet, be sure to do so now to increase the speed of your weapon.
When you continue down and the screen stops scrolling down, and starts scrolling to the left, there is a hidden item beneath the rightmost statue. Ordinarily, it is a yellow crystal. However, if you can get the hundreds and tens digits of your score to be zero, you will earn an extra life instead. This is not as difficult as it sounds. In this area, you will encounter Puka Puka ghosts and Garakotsu zombies. The ghosts are worth 200 points when hit by Ofuda, and 100 points when swept away with the purification wand. The zombies are worth 100 points by Ofuda, and 50 points by wand. Continue attacking enemies until your score ends in "000" and then shoot the ground below the right statue to collect an extra life if you prefer that to the yellow crystal (which itself is quite useful). Just don't hang around so long that the Ring of Fire shows up.
Once you begin moving to the left, you will see a lantern near the top of the screen. Shoot the ground to the right of that lantern to reveal a red Ofuda which allows your Ofuda to travel through the enemy. This will come in handy because the Bake Chouchin start to appear. These yellow lantern enemies are not very brave. They float onto the screen a while until they feel that Sayo has gotten too close to them. Then they spit a fireball at her and race off the screen. If you can shoot your Ofuda far enough, you should try to remove them immediately before they have a chance to fire at you.
You will eventually find the stage boss key nestled into the corner of some walls. To the left of that, you can find another hidden blue Ofuda by shooting the top of the vertical wall that extends from the bottom. It is only a short distance from that point until you reach the boss of the stage.
Boss[edit]
The boss of the second stage is the Lightning King, Raidenou. He arrives on the screen floating on a thunder cloud. He has two different lightning attacks. From his left hand (on the right side of the screen), he can shoot a large lightning bolt which travels a short distance, strikes the ground, and starts a fire where it landed. The fire will remain on the screen for a while and must be avoided. From his right hand (left side), he shoots small lightning bolts, which travel all the way across the screen until they disappear.
The first time you face Raidenou, you don't have to use any special strategy as long as your Ofuda shoot far enough. You can remain on the bottom of the screen and shoot upwards. You should be safely out of range of his large lightning bolt attacks (but be mindful of the flames that appear), and you can stop firing long enough to dodge any small lightning bolts that he throws at you, before returning fire back at him. The second time you face him, he is much more aggressive and the speed of his small lightning bolt increases, making it harder to avoid. You must be greater prepared to get out of the way when he begins to fire them at you.
The wealth god that you rescue this time is Hotei. Like Daikokuten, he stands for wealth, but he is also the god of laughter and happiness by being content with what you have. He is depicted as a laughing fat man with a bag of rice over his shoulders and kids. He carries his few possessions in a cloth sack, being poor but content, and he is admired for his happiness, plenitude, and wisdom of contentment.