Cloudy World (水鏡, Mizukagami, Reflecting Water) is an area connected to the Broken City.
This world is, for the most part, empty save for some interesting scenery. There are many trees in interesting shapes. Mostly celestial bodies like moons and stars. There is also one very large tree that resembles a Christmas tree topped with a lotus. Walking here produces a splash sound, and one can see rippling water around Urotsuki's feet, revealing that the clouds are reflected from above.
Curiously, all effects can be equipped here, but most cannot be used.
Somewhere within the world is a pedestal similar to the one you came through to get here, but darker in color. It will lead to a cave with two streams of water droplets; interact with the wall to see that these come from two closed eyes. If you interact with it more times, the eyes will gradually open. The eyes will also react to various effects being equipped.