Excellent job overall with the game! Loved the 'shoot + not yet' mechanic, super fun way to up the ante! The illustrations are very well done and assist the theme and tone of the game wonderfully.
The sanity mechanic is real nice to have, but i would love to see you push it a bit more. For instance, in my first run (I so plan on doing more) my sanity dropped quickly and got really low towards the end. I would love to see some sort of attribute tied to low sanity levels, ie a sanity below 30 causes you to hallucinate or have to reexamine a scenario, while a sanity above 80 makes you brave and gives an advantage. I think that would also make it much more impactful, instead of just a counter of sorts.
Another way to add illustrations would be to illustrate some of the items you pick up! The descriptions are super cool, but I'd love to see that bunny plush (at all stages haha) in your style! Great job!