I've been playing the game for a few hours, already explored the sea by boat, explored a little of the frozen forest and the desert and even gathered enough money to recruit Meiling, but I've seen on the screenshots of the game that the Bloody Lady from the Haunted Village can be recruited and I have NO IDEA on how to do this. Can I have any kind of hint about it?

Hint is talking with NPC in China Town while have Meilin in party, One of NPC will hint about Magic Mirror in somewhere of Snowy Forest Cave and you can use it to purify Bloody Lady Soul ,this is hint if you don't want a direct spoiler

I'm not very good at English, but I'll try my best to write something you can understand.

SPOILER : Go to polar bear cave in Snowy Forest and find Treasure Room, You will found Magic Mirror and then go to haunted town and battle with Kuchisake Onna, Dropped her HP to 50% while she tranform into phase 2 if you have Magic Mirror in your inventory she will join your party