After the goblins get some food and wine, they can try to get past the giant who is blocking the path.
Get an Egg
Have 
Winkle stand to the right of the chicken and have
Fingus stand to the left.
Switch to Winkle and click the chicken, then when
he is holding the chicken, have
Fingus use the sausage on the
chicken's head. Take the egg.
Get Past the Dog
Have Winkle stand on the bridge (to the left of the chicken yard) and have
Fingus use the Sausage on the pot hole just to the left of the bridge. Switch
to Winkle and have him walk past the dog after
Fingus uses the sausage.
As Winkle, click the hole in the tree to create a shortcut.
Fry an Egg
Have Fingus go into the burrow that Winkle opened in the wall to the left of the bridge, then have Fingus use the matches on the wood pile, then have him use the egg on the
fire. The giant will wake up.
Feed the Giant
Have Fingus use the sausage on the giant, then have him use
the wine on the giant.
Go to the Next Area
Move the cursor to the woods just to the right of the giant until it turns into a door icon, and click to go to the Castle.