Kakariko Village
Take a look at the new shops and games within the village. During daytime, talk to the girl who is keeping the chickens, she will give you the Pocket Egg. This item is the first of the Trading Sequence. Go to the Graveyard, pull the tombstone on the left with flowers in front of it and go down. Talk to Dampé's ghost and race against him. At the end of the race, talk to him again so he rewards you with the Hookshot. Follow the dark corridor and play the Song of Time in front of the blue block to get out.
Once in the windmill, jump on the spinning blades to pick up a Piece of Heart from a platform, then jump down and talk to the musician. (You can also get in the windmill from Kakariko Village.) Take out your Ocarina of Time so he teaches you the Song of Storms. Leave the village and head to the Lost Woods.
Lost Woods
Go to the Sacred Forest Meadow (right, left, right, left, forward, left and right). When you meet Mido, play Saria's Song. Go through the maze while sneaking past the big Moblins or attack them with the Hookshot when they are not facing you, then climb the stairs. If needed, the Fairy Fountain is still at the same place. While avoiding the Moblin's attacks by zigzagging, go behind him and slash him. If you have some Bombchus, you can throw three at him to get rid of him. Finally, you meet Sheik again, who will teach you the Minuet of Forest. Aim at the branch with the Hookshot to reach the Forest Temple.