On your way out of the airport, you arrive at the place where the two-headed squirrel was sighted. PICK UP TREE BRANCH from the tree. Approach the mound and watch as Zak ponders about his article about the squirrel. When he finishes, you can get rid of it: either GIVE PEANUTS to it, or you can kill it with USE a long, hard object (the TREE BRANCH, the GOLF CLUB or the BOBBY PIN SIGN) with it; however this option will cause 'bad karma' to you. Now, you can USE a long object (see above) with LOOSE DIRT to open an entrance to a cave. If you still have the BUTTER KNIFE, you will end up bending it, and having a BENT BUTTER KNIFE
Inside, it is pitch black. You can TURN ON LIGHTER to see some portions of the cave, or you can use the WHAT IS verb. Locate the ABANDONED BIRD NEST and USE one of the long objects to pick it up. Alternatively, if you have killed the squirrel, you can take his nest also. Now USE NEST AND BRANCH IN FIRE PIT, and USE TREE BRANCH/NEST IN NEST AND BRANCH IN PIT, USE LIGHTER ON NEST AND BRANCH. The BRANCH is not required if you are quick enough, but will make the fire last indefinitely. Walk to the right and USE YELLOW CRAYON ON STRANGE MARKINGS to open magically a doorway; you can do this only when the pit is lit.
Note: If you burn up both nests without using the BRANCH, before opening the doorway, you won't be able to enter the room and finish the game.
In the secret room, USE REMOTE CONTROL and you open the device. PICK UP BLUE CRYSTAL; the lights go off so find your way out and leave Seattle. The CRYSTAL will be used to enter the mind of animals, and meet Annie.
Optionally, you can visit Seattle again, either by plane, or with the Yellow Crystal. If you have been trained by the Guru in Nepal, you can experiment for fun to use the Blue Crystal on the squirrel, where you control his heads.