Thank you so much! Getting the blue key will require the Dive Contrivance. Without spoiling it right out of the gate, I can say one of the npcs in the Water Town might have a clue. That would be a good place to start your search.
Thanks for the tip. It is quite well hidden. How many candles are there actually to find? Am I still missing some (see picture)?
Looks like you're just missing 2. There are 16 at max. I really appreciate you digging into this game and trying to get 100%!