After interacting, go straight ahead. You can crouch and pass under the tree roots on the right. There are enemies inside; defeat them to collect some Dust.
Continue up the stairs. At this point, head to the right first.
Inside the house on the right, there's another Puppet Woman. Defeat her and pick up the book in the house: [Villager Relic Investigation #10 [Steadfast Villager's Log] Frost Descent].
