Pecky's Mansion is the building that you may remember appearing back when Pierre removed some Dark Mist with his jubilation. It's now accessible to you. When you enter, you'll see Pecky standing directly ahead. If you've talked to him before, you know he's exceptionally wealthy and equally bored. When you talk now, he'll say he doesn't mind sponsoring the Monster Village competition. There's just one catch: he wants you to make him laugh.
Unfortunately, telling him how much he looks like a pumpkin with a rooster's comb isn't likely to elicit a giggle. Instead, you need to talk to him while dressed in the proper attire. Equip the Monkey Hat and he'll bust a gut.
Now that he's busy laughing, Pecky will admit that you win. However, he states that even though you've made him laugh, he won't sponsor the village. Now he wants to play a little game. If you do well, he says, he'll sponsor the village. When you agree, he rushes up onto the balcony and sends floor tiles flying. To win, you must whack as many moles as you can in the span of a minute's time. You have to whack at least 50.
There are only two moles you can hit. They jump out of the holes and run across the room. You can hit them with plain, simple attacks from your drill. The trick is that you can hit one mole several times and each hit counts. So chase after a mole and tap the 'X' button repeatedly to get five or so hits per mole. If you're between a mole and the hole he's chosen to run to, you might do even better. This, like the last mini-game, is simple to win.
Once you triumph, he'll agree to sponsor. He says he'll head over to Monster Village to let everyone know. Head back to Monster Village now and you'll find him standing by the fire at the village center. He states that he's having Doug and his brother help to rebuild the village. He expects them to arrive soon.
If you head back to Tiese Town from there, you'll be confronted by Pamela. She says people are talking about you, and that everyone suspects that you are the one stealing cakes from Fan in the bakery. Talk to her again as she turns to leave and she'll open the MYSTERY BAG you should've picked up along Kilometer Path. The item you receive is SHORTCAKE. How ironic! You may also notice Chucky on the stairs. Head to the bakery now to talk to Fan about her shortcake shortage. She demands that you pay her back and says she's keeping a running tab. Cakes are at a premium (a shortcake is 5000 now), and she says it's all your fault.
Now head back to the Monster Village and you'll see Digby and Doug working to help rebuild the village. The moles are surprised to see you. They say they ran into you at Pimento Mountain, with Pino. Apparently, a shape-shifting monster has stolen your identity. That's the reason for the shortcake issue, and now Pino is in danger. You need to head to Pimento Mountain. Head out to the world map, then west to the mountain.