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For those playing with YHS what should we interpret the spells of the three Hannya as - are we supposed to look up an OSR spell list and pick some and just make them YHS abilities? 

A supplement about rituals and magic is something I would like to do in the future, but for the moment you have two choices: choose the spells from the OSR game of your choice (this is the way I play it) or come up with your own spells and use the level for the saving throw if any.