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The statue is in the first area where all those ghost statues are, all the way to the left is one you can interact with. Take that one. Then you need the feather from the Peacock which you can use with the honey and red paint to make orange paint. Then you paint the missing stripe in the paintings room to get orange into the color ball.
I seem to be stuck in the dream like level, which requires me to go back through the fairy portal. I clicked everything and the only action I get is making the character small in the background. Any tips? :)