Glad to hear you're doing more with that one! I'll be following along with interest. How big are you thinking the final story will be?
Honestly the basic setting and concept you had there could work for all kinds of stories. Just see...most fairy tales. Fairy tale logic and settings seem fairly consistent, and there's endless stories possible by swapping the familiar elements around.
I should really get me one of these motivation/accountability/whatever threads. Easter weekend completely wiped me out and I'm still struggling to get back on some kind of routine for my writing.