Handle for mosaic

Okay I have no idea where this stupid handle goes. This game is complete junk but I won't be happy until I finish it. The cursor is awful, the magnifiers are brief and there are things like the toy horse that consistently have magnifiers but have no significance to a puzzle. The strategy guide doesn't open and I have no idea where this random horse handle goes at all! Someone tell me where this stupid thing goes please!

that handle is not meant for mosaic. It goes in the room all the way up in the tower. You have to use it on a rope to slide to the demon's zone.