The Story of Mechanical Dolls

While searching for a village where they can get Hermes' speedometer repaired, Kino stumbles across a family living in the woods, served by an old woman who claims to be a mechanical doll. As she spends time with 'Nanny' and her family, Kino finds themselves impressed by the old woman, but begins to wonder about her origins -- for neither Nanny nor the family seem to be exactly what they claim...