you have to go to the cave and fight gargoyles which you find after you talk to the orca
Wait that's weird.... In my experience i had no choice but to kill Bread... You need to kill Bread... And you need a Jesters badge to access the Gargoyle nest/spawning area for you to kill and get moss and for you to access the Gargoyle nest you need the Jester badge and show it to the phantom ferry man and he'll lead you into the jester's secret room to find the nest completely...