Muriel invites her deranged relative, Fred, to their home. He has a problem, though. He can't stop giving haircuts. He shaves all of Courage's hair off, and he gets caught by the police, who send him back to an insane asylum.

Courage finds a slab that belonged to a dead guy named King Ramses. A guy named Professor Flith comes and says the slab belongs in the museum. However, Eustace (knowing it's worth a lot) won't give it to him. So, the ghost of King Ramses comes and causes plagues to happen that won't stop until Eustace returns the slab to the museum. The first is a flood, the second is loud music, and the third is locusts. The slab is finally returned, but Eustace is now possessed by King Ramses, as punishment for his greediness.

A Queen who lives in a puddle in the yard of the farm rises up out of the puddle. Eustace sees this Queen and decides to follow the hot chick. Little does he know that she is bad and plans to eat him. She drags him into the puddle, and Courage follows to save Eustace. She lives in a castle, which is where she plans to eat him. Courage saves him and gets out of the puddle as they just miss being captured.

While shopping for quilting supplies, Muriel meets the mysterious Siamese-twin Stitch sisters, who invite her to join their "quilt club"... if she can prove she's good enough! Muriel becomes obsessed with proving she's "quilt club" material, but when the Stitch sisters come over to initate her, they use their wicked magic to literally make Muriel into quilt material!

The windmill is broken. Courage finds that whenever the windmill stops... four armored skeletons on horseback come towards him! He finds signs on the windmill vanes and his computer says they are mystic signs made by the first owner of the farm house. Vandals who had a broken paddle wheel needed energy, so they tried to steal the windmill, but the owner put mystic signs on them to keep them away. Whenever, it stops, the ghosts of the vandals come back... and they want to cut everyone's head off! The windmill eventually gets fixed and the skeletons go away.

At a county fair, a mysterious paper-cutter offers to make full-size cameo silhouettes of Muriel and the Farmer. Back at the Farmhouse, Muriel mounts the cameos on the wall and heads upstairs to bed. Courage sees the silhouettes moving in their picture-frames, and screams as the cameos pull themselves free and head upstairs. The sinister silhouettes drape themselves over the sleeping Farmer and Muriel and steal their souls, pulling the life force out of them both and leaving only their inanimate bodies behind. The silhouettes "fill out" into three dimensions, still made of paper but shaped like real people now. Courage must find a way to get the silhouettes to leave so that Muriel and the Farmer can return.