The Auspicious Lantern is only available in Chapter 3 ... The final one is located a bit further away, near the Mani Wheels Shrine. Place yourself in front of the Shrine, turn back and start ...

you must defeat the Lantern Holder. You can find it in Chapter 4. Head to the Estate Of The Zhu Shrine in the Village of Lanxi. Do this after reaching the Webbed Hollow. Now, head to the left of ...