How do I get the magic coil?

This item is a bit hidden.  You're going to have to look around for a while
to find it.

Go to the barber, on the right side of the street.

Take a look at the woman in the chair.

She's having her hair rolled.

The roller in her hair is what you need.

You first need to get her to take it out of her hair.

Try talking her out of this hair style.

Just talk to her.  But you need to do so after you look at the roller.

The barber will then put the roller in his pocket.  Now you need to get it
from him.

If only you knew a bit more about pickpocketing, you might be able to take
it.

Talk to the lovable street starfish (a.k.a. urchin) in the square, and he'll
teach you the skill.

Try pickpocketing the roller to take it out of the barber's pocket.

But you'll need to do so some time when he's a bit distracted.

Try talking to him.