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(+1)

Get the cookies from the doghouse at Horace's in Feasterra, give them to Karen (scarecrow) to get the key, open the right most door in the bathroom at the Glory Dungeon at night to get the lens extractor, then use it on the telescopes on the wall in Grant's room. Then use the lens on the telescope at Ghart's at night to find the secret location, and when prompted to wake the dragon, keep saying "yes, great idea".

I can't find the cookies. 

Go to Feasterra on the map, enter Horace's house in the second section of Feasterra, and there's a dog house inside the room. 

I was not able to find the cookie in the doghouse.

Have you finished the fight with Grant X and finished the main story for this update. You can't get it if you haven't finished it first.

Not yet. =/

I need to improve my skills to the fight =)

Thanks