(1) You exit the Shadowy Crypt and return to the Fade outside the Baroness's Manor. You can hear a commotion in the distance at the manor gates.
(2) Speak with the Village Watch and he'll fill you in on the events in the village. When you're finished, walk around the outskirts of the village, being careful not to approach the center where Justice and the other villagers pound at the gates. You don't want to trigger that event yet. Collect the three essences and the codex entry before approaching Justice.
(3) When you enter the middle of the village, Justice and the villagers question you. Once you explain your true intentions, Justice teams up with you for the attack on the Baroness's Manor. Though probably not wise, you can choose not to align with Justice and the villagers.
(4) Assuming you ally with Justice, enter the manor courtyard and confront the baroness. She dismisses your remarks and sends the First to slay you so he can earn a trip back to the real world. The baroness also sends genlocks, hurlocks, and a pair of ash wraiths into the fray. Back your healer out of the chaos and concentrate on healing the tank who should engage the First.
Your second warrior or rogue should hold the ash wraiths' attention. The third party member should pick off the genlocks and hurlocks or help out with one of the other foes when they look like they're about to fall. If your healer can keep up with the enemy damage spikes and drop a few Group Heals during the fight, you'll defeat the First and confront the baroness again.
Before you can seize power from the baroness, she sacrifices the First's life essence to open a portal back to the physical world. You leave the Fade, but not without a few surprises.