First of all, switch to Aiden and enter the hall in which Cole is monitoring Jodie. Near the cabinet at the end of this hall, close to Cole, you can find a [BLUE ORB].
Grab your clothes and change in the bathroom, then lie down on bed until Jodie realizes she's forgotten about Mr. Bunny Gruff! Fetch him from the pink suitcase on the chair in the living room, then go back to bed. Jodie needs a bedtime story from Aiden, so fiddle with the flashlight to create Mr. Elephant on the ceiling. (Ah! Aiden's TRUE form revealed!)
Check out the other room and hall after this, then check back on Jodie. What the!? Entities!? Quickly interact with the environment of Cole to make him wake up, then protect Jodie from the entities. Again, there are two types here; those that hold Jodie (defeat them by holding the analog sticks towards each other) and those that freely roam about the room (destroy them by pulling the analog sticks down and releasing them).