I don't have a ton of information yet on this side of the quest.
The quest starts with the lense maker in the holy city of TM. This is NOT the Royal City with the soul forges, this is the pastoral city with the entrance to the Tomb of Kings. The Lense Maker is just E of the entrance to the dungeon on the fringe of the town.
The things you need to advance to the house lottery portion of the quest are:
1 Draconic Orbs - Sevants of the whatever they are near the fairy dragons
1 Cherry Blossom Petals - I don't know where to get yet
1 Flaming Bud - I don't know where to get yet