You need the candy canes.
Walk to the right and talk to PB. Ask where the candy canes are and he’ll direct you to the kitchen. Walk to the right to enter the kitchen and look in the brown cupboard to find… it empty. Walk to the left and talk to PB again.
Tell him the canes are gone and he’ll explain you the warehouse and the key. So you have to find the key. PB won’t tell you that, he doesn’t know. But there should be clues around the house. Look at the painting. The square in the lower left is very pale yellow. Use the square to notice it’s a PAPER. On the paper is a clue where to find the sweeties: you’re looking at them. That doesn’t really help.
Walk to the left and look at the shelf with the box on it. Look at the box and use the box. You can’t reach the box but you can use the shelf to knock the box off. Oops. At least you have the LASER PEN. Look at the bust. It’s from wax and has a ‘blank’ stare. Use the laser pen with the bust to fill in the blank and you’re looking at the key.
Walk all the way to the right into the kitchen and use the phone to ring the elves. But then you hear an unpleasant message. When you wake up again you hear some strange noises. Walk to the south to see where it’s coming from.
Game source: A copy of the game was found here on the internet.