Episode 2 picks up right where the first one stopped, in the cave beside the furnace and crafting table, and it's still the first night. Basket repeats the plan: "I'm trying to get to the end but not in any sort of fast manner." The neighbors haven't gone anywhere either. "I found this mob spawner and a bunch of creepers and stuff around here."
Blocking off the cave
The cave is big and has a lot of ways in, so Basket fills a few of them with cobblestone. "Maybe I'll dig this up a little bit, block it off." The spawner nearby is a mixed blessing. A bed is the plan for skipping the night, but "if they're too close to the bed, you can't sleep," so the bed may have to go farther down the tunnel. The furnace has been busy with steak, which is good, because Basket is "already pretty hungry."
The missing wool
Then Basket opens the crafting grid to make the bed. Three planks go along the bottom, and above them there is one brown wool and one white wool. A bed needs three. "Oh no, I thought I got it." Later Basket works out what happened. "I thought I killed enough sheep, but I guess one of them didn't drop a wool. That's a shame."
The leather from the cows does get used. Basket crafts a pair of leather boots and puts them on.
Stone, coal and a tempting vein of iron
With no bed, there's time to mine. The wooden pickaxe is "kinda slow," so Basket gathers cobblestone and crafts a stone pickaxe. "Yeah, that's much faster." Coal comes next. "Okay, so I've got a bunch of coal." Somewhere in the dark, "I hear a spider."
Deeper in, there's iron in the cave wall. "It's tempting. I don't know if I want to risk it quite yet. It's a big cave." The spawner is on the list for later too: "eventually I'll try and conquer that zombie thing," then build a room around it for experience, which "would be good for enchanting purposes."
Waiting for morning
Basket crafts a chest from planks and sets it down in the cave to hold the spare items, then settles in to wait out the night. "I'll keep recording in case I die." Zombies keep showing up at a gap in a cobblestone wall, and Basket meets them there with the sword. "These guys are noisy."
Daylight
Blue sky finally shows through the openings in the cave roof. "Okay, so it's getting daytime." The episode ends there, with Basket alive beside the new chest, still one wool short of a bed.