Looks like you found your way outside of the starter region! Haven't blocked off access yet. The dragon egg is in a cave between the cabin where you start and the water fall. Go up the natural stairs not far from the cabin and you'll find your way sooner or later. Not sure why "Stone Village One" is still in there. Must be part of an old journal entry I forgot to clean up from the previous version.
this is now my third try to hatch it..
Try 1: I sleep to long - fire goes out - egg timer resets
Try 2: I accedently go to the main menu and have to load the game I saved - fire resets (because fire and doors reset on load...) - fire is out - egg timer resets
Try 3: ... got it! Man this guy is cute :)