AGDInteractive - Sierra Adventure Game Remakes Forum

After pegasus has dropped me off. I go to the grandma cottage, she says I have to find her granddaughter. But I do not go looking for Possum, instead I go to the church. Read bible, speak to the monk. After the scene with wolves I finally go looking for Possum. But in her usual place when I should hear her sobbing, and one screen down find her, there is no sobbing nor the girl. I go back to the cottage but cannot enter either, it says that I should first find the girl. I'm stuck.

You need to get the silver needle. Once you've done that, Possum will appear (I've confirmed this with the save game you posted).