Hi there, I can answer most of these for you.
This is a Game Jam project, so future updates for this are not planned for this version.
I would like to make a full non-Game Jam version in the future that exapnds on content as well as the story, this current project is lacking both in a lot of places. It's not cancelled but I have no immediate plans to work on it.
As for Drawing with Nat, that game has been completed. I have no plans to continue updating it or adding any more content to it, I have since moved onto other projects.
If you need help with finding certain effects/abilities you can visit this games wiki page, they provide some tips on where to find each! Simply check the Yume Nikki Fangame Wiki and search for this game.
Hope that helps!