This is what happens when you do things with it:

• Feed It: Makes food into statue
• Play: Paints a Canon
• Sleeps: Dreams of being a Super Puffle
• Dance with it: It sings
• Bathe it: Adds coloring into the water
• Give it Gum: Draws a happy face on the gum
• Cookie: Eats it into a Mask and puts it on.
• Play(when all bars are on full): Films a movie

And click on the New in the Yellow Puffle House for a Grey Puffle House.