The Baker's Wife again fails to seize Cinderella's slippers. The Baker admits they must work together ("It Takes Two"). Jack arrives with a hen that lays golden eggs, but Milky White keels over dead as midnight chimes ("Second Midnight"). The Witch discovers the Prince's visits and demands Rapunzel stay sheltered from the world ("Stay with Me"). She refuses, and the Witch cuts off Rapunzel's hair and banishes her. The Mysterious Man gives the Baker money for another cow. Jack meets Little Red, now sporting a wolf skin cape and knife. He brags about his adventures in the sky, and mentions a golden harp owned by the Giant. She skeptically goads him into returning to the Giant's home to retrieve it.