Episode 1 opens with "The Pipe Dream Server" over clips of a group of players crossing a mesa and gathering in a stronghold, then a title card reading "Episode 1, Lake House" over Basket standing by a lake at spawn. This first edited episode is a tour of the house going in under that lake.
A house under the lake
derpguru logs in and asks in chat whether Basket knows where the cows are now. Basket does not ("nopers"). Up top there is only "a bunch of temporary stuff": chests, a crafting table and brewing stands on the grass by the water. The lake used to be one block deep. Basket dug it out, changed the bottom to gravel and put a blue glass roof over the rooms below. The way in is through a pillar of the cobblestone bridge, past an item frame holding a cooked chicken that someone left as a "happy turkey day" greeting.
The Basket Smelter 2000
The first floor holds what Basket most wants to show: a smelter that is "highly inefficient in terms of the materials it took to actually make it, but that's kind of how I roll." Three furnaces sit in a stone brick wall between an Input sign and an Output sign. Items go in at one end, lava buckets go in a separate chest as fuel, and hoppers carry both along, filling the first furnace's hoppers before anything reaches the others. Finished items ride an item elevator back up to an output chest on the same level. A chest right below would have worked, "but that's no fun."
A test run
Basket fills in a few blocks so a torch behind the furnaces stops showing through, then runs a live test. Short on cobblestone, Basket heads up past derpguru at the water's edge, takes two stacks from the chests by the lake and drops them in. Everything runs through the one furnace, as predicted: easy on fuel, slow on cooking. Stone starts counting up in the output chest, and Basket crafts a sign to name the machine the "Basket Smelter 2000."
Moving downstairs
By a later update, most of the stuff from the surface has moved down to the second floor, where squid drift past above the glass. There is a bed now, and a wall of chests with item frames to label them. Basket is still "pretty low on resources," so some branch mining is probably due.
A brewing corner
In one corner sit two brewing stands, a row of nether wart and a melon block set into the wall. The melon is part of the foundation: Basket can break it, and another will grow there as long as there is an air block above it. Healing is the potion that matters most, "because we're on UHC mode," and a chest nearby already holds melon and Potions of Healing.
Basket calls it the base "for now" and says the next episode will be the stronghold and the Ender Dragon. The episode ends with a last look around the second floor, then the end card runs to the last frame.