A mysterious little girl is abandoned at Briarcliff. The Monsignor makes a Faustian pact with Dr. Arden. The origin of Bloody Face is revealed.
After helping a man get parole, Morgan regrets his decision when the man murders someone shortly after being released.
The Ottos struggle to be together for Christmas; Taylor teaches Oliver how to ask out a crush.
Katie and Greg try to drive a wedge between Taylor and her new boyfriend; Greg helps Oliver plan a date with a girl from his ballet class.
Katie takes things a little too seriously at Anna-Kat's school field day competition; Greg enlists Taylor's boyfriend to help him make chili for a local competition.