“The Annals of Santopia” continue with “Duncan in the Other World,” which follows Elf Duncan after he is discovered hiding in Henry’s tool chest after the Grand Sleigh has left them off in London. Blue Elves like Duncan are expressly forbidden to be in the Other World because they are so mischievous and cannot help themselves from getting into trouble. Henry has no choice but to send Duncan to stay with the Red Elves that make their home in a warren of caves beneath the Tower of London. But since Duncan changed into a different uniform while aboard the Grand Sleigh, the Red Elves assume he is a Gold Elf, not a Blue Elf. Back in Santopia, Turis has left Spicata, Taraxa and Inula off on an island in Mushy Marsh, across which they must make their way to reach the Volcanic Palace. The White Sage takes them in and accompanies them to Santopolis so Santa Pops can decide what to do with them. The next morning, the Baroness watches as Santa returns from his Christmas Eve journey through the Tunnel of Leaves. As soon as the Grand Sleigh soars across Frozen Lake, the Baroness gets into her sleigh and goes to see Gelagoo, master of the Pirandelves, who assures her that his Cretins recovered no human remains from the attack the night before. She assumes that Taraxa, Inula and the newly born Noelle are safely dead, clearing the path for her daughter the Princess Dazzle to marry Price Nicky in 18 years.