Where do I get grass?

Slurp! If you leave the piles of grass as they are, they'll wither, so you must deal with them wisely, hmph! The key is to obtain seeds around the pond or have your dragon meticulously harvest them. If you manage them diligently with a benevolent heart, you'll be able to cultivate a lush forest, so cheer up, hmm!

They come out of the pond. Since the level 1 grass ones keep disappearing, I combine them as soon as I get 3. The pond appears when you combine puddles, but even those turn into mushrooms when the level is low, so you have to combine them quickly.