Flashbacks: Esteban takes Lilim back to his apartment where he checks on Robin’s condition and tells Lilim a ‘fairy tale’ to explain the danger her Dark Lord poses to the neighborhood, if not the whole town. Lilim is non-plussed, Kent thinks the whole story is stupid except for the part about demon dog guardians of the moon god. Wayne Bruce is apprehensive, Lilim sends him home.
Meanwhile, Kali responds to a summons at the Taj Mahal restaurant, where it becomes clear the workers there exist in a pathetic half-life. They are confused and unclear as to why they can not leave the restaurant and that they have all given up something important to keep Zed animated. Kali cruelly puts them in their place and collects money from upstairs for her own use.
Edgar thinks back on a scene from the past. In the Flea Circus, Pamela, in uniform and very much vital and public-spirited, interferes with an argument between Vlad, Edgar and a young woman named Rosemary. Vlad is pulling his usual double dealing with Edgar over a demon cat. Rosemary clearly likes Edgar and is trying to get tea herbs out of Vlad. Edgar manages to finagle the cat out of Vlad, just before Mildred gets there, thus saving Esteban’s life.
Edgar gives the Forbidden Bottle to Vlad. Mildred warns Rosemary to stay away from Edgar, but the young woman shows up at his house after he has extracted a promise from Esteban. Rosemary is interested in an artifact in Edgar’s possession and he seduces her, taking her virginity as part of the ritual necessary to safely deal with the artifact. Afterward, Mildred finds them and disowns Rosemary. We transition to the present, where we see that Rosemary has become Lilim, it is strongly hinted because of what she found in the artifact.
Jason meets Pamela in their house, she is in a bathrobe. He frets about her increasing isolation and encourages her to eat something. She claims to eat when he isn’t home, but he can’t find any evidence of her touching anything in the fridge. After coaxing a promise out of her to come to Ralph’s sure-to-be-disastrous upcoming neighborhood 80s night, Jason hears screams issuing from Jessica’s house… again. Jason confronts Jessica’s obnoxious boyfriend, Bud, with Lilim and Marcus looking on. Bud tells Jason he has no idea what’s going on and despite a valiant effort from Jason, opens a can of whup ass on the young man in a suit like only a brute in a wife beater can.
Lilim has a mystic vision ofJessica’s true nature and realizes she is an Inugami, one of the demon dog guardians from Esteban’s ‘fairy tale,’ Lilim picks Jason up and dusts him off, taking him to her porch where they discuss Mildred and Edgar. Lilim learns that Jason was a witness to Zed’s attack on the Unnamed Punk. Lilim puts seeds of doubt into Jason about Mildred’s mentorship, as he sees her eyes turn supernatural black. Mildred shows up and chastises him before Marcus can return with the mimosas. Mildred says that she once had a daughter, but Rosemary is dead to her now.
Lilim knocks on Edgar’s door, interrupting another of Violet’s tasteless attempts to come on to him. She storms out, leaving drug paraphernalia behind. Lilim shares Jason’s story about Zed’s ghoulish attack on the unknown punk, for which she was framed by the cops. Edgar says the cops are too lazy to do anything, unless a prominent citizen acts as a witness. Edgar discovers via dark magics that Mr. Otis was a witness.
First they try to get Jason to come along, but he doesn’t trust either of them anymore and Pamela convinces him to stay home with her, mostly by letting her robe fall to the ground and guiding Jason into the bedroom. During the pillow talk afterword, Jason convinces Pamela to at least look for a new job as their drowning in bills. Pamela reluctantly agrees to go to the Taj Mahal if Jason will go with her. At the Taj Mahal, the strange and creepy staff recognizes Pamela as a more powerful version of one of their own and hire her as if she had always worked there.
Lilim and Edgar visit Mr. Otis where Lilim seduces the old man and promises to provide him with booze and the occasional steak, both forbidden to him by Daisy. He also talks about his wife and her flower garden, which blooms despite the fact that no one living in the neighborhood seems to tend it.
After Mr. Otis’ testimony, the Police agree to pick up Zed, but he has just been murdered by Kali, again. While Esteban and Buttercup share an intimate moment near the lush and garden-like end of the greenbelt’s drainage ditch, he extracts a promise from her to help the lost souls in his apartment if anything goes wrong in the “coming trials and tribulations.” Zed, newly resurrected, emerges from the ditch and Esteban helps Buttercup seduce him. His head wound heals mystically but Esteban accidentally tips of the police as to Zed’s location.
The police take Zed into custody, but he remember’s Kali’s mental conditioning and tries to escape. The police gun him down in the street. Esteban shows up in the ambulance to take him to the morgue and waits for him to come back to life. Esteban helps Zed find corpses to rebuild himself and gives him a card, urging the ghoul to contact the Bakeneko the next time Zed’s hunger re-asserts itself. Zed only half understands.
Edgar and Daisy go on a second date to the Taj Mahal, where Pamela has become manager by dint of supernaturally dominating the other cursed staff members. She waves to someone in the flower garden across the street that Edgar can’t see and Daisy ignores. The lovely caretaker unburdens herself about her growing frustrations with Mr. Otis. Lilim is also at the restaurant and she has a psychic battle with Pamela, who calls her Rosemary. Pamela tries scare Rosemary away from Jason and Lilim warns Rosemary no to let Jason mess around with the Forbidden Bottle.
The last date of the session, between Edgar and Daisy, ends when she accepts his invitation into his house. During the spooning the next morning, Edgar extracts a promise from Daisy that she won’t take away Mr. Otis’ few remaining pleasures.