The knight, Sir Simon, comes to life and tells William stories about olden times and an evil wizard who is ruling his kingdom.

Desperate to stop Mrs. Phillips from going away, William has Sir Simon shrink her with a magic token he stole from the wizard, Alastor.

While traveling through a magical forest, Sir Simon is tempted by the apparition of his old horse Moonlight, leaves the path and disappears, after having warned William that doing just that will cause one to get lost forever.

Alastor accepts him as his fool and reveals to William's horror that he has defeated Sir Simon again and turned him to lead, keeping him in a gallery with his other victims.

William learns from Sir Simon's old nurse, Calendar, that he needs to get Alastor's necklace with his tokens on it and defeat his mirror that reflects what's inside of you.

Sometimes the author accomplishes this with attention to detail, sometimes by showing us the real world that surrounds the magic, sometimes by giving us very believable characters.