The Witch has raised Rapunzel in a tall tower accessible only by climbing Rapunzel's long, golden hair ("Our Little World"); a Prince spies Rapunzel and plans to meet her. The Baker, in pursuit of the red cape, slays the Wolf and rescues Little Red and her grandmother. In return, Little Red gives him her cape, and reflects on her experiences ("I Know Things Now"). Jack's Mother tosses his beans aside, which grow into an enormous stalk, and sends him to bed without food. Cinderella flees the Festival, pursued by another Prince, and the Baker's Wife hides her; when asked about the ball, Cinderella is unimpressed ("A Very Nice Prince"). Spotting Cinderella's gold slippers, the Baker's Wife chases her and loses Milky White. The characters recite morals as the day ends ("First Midnight"). Jack describes his adventure climbing the beanstalk ("Giants in the Sky"). He gives the Baker gold stolen from the giants to buy back his cow, and returns up the beanstalk to find more; the Mysterious Man questions the Baker's price of a child, and steals the money. Cinderella's Prince and Rapunzel's Prince, who are brothers, compare their unobtainable amours ("Agony"). The Baker's Wife overhears their talk of a girl with golden hair. She fools Rapunzel and takes a piece of her hair. The Mysterious Man returns Milky White to the Baker.