Anna has not given up on the house, and teaches the children proverbs and songs extolling the virtues of home life, to the King's irritation. The King has enough worries without battling the schoolteacher, and wonders why the world has become so complicated ("A Puzzlement"). The children and wives are hard at work learning English ("The Royal Bangkok Academy"). The children are surprised by a map showing how small Siam is compared with the rest of the world ("Getting to Know You"). As the crown prince, Chulalongkorn, disputes the map, the King enters a chaotic schoolroom. He orders the pupils to believe the teacher but complains to Anna about her lessons about "home". Anna stands her ground and insists on the letter of her contract, threatening to leave Siam, much to the dismay of wives and children. The King orders her to obey as "my servant"; she repudiates the term and hurries away. The King dismisses school, then leaves, uncertain of his next action. Meanwhile, Lun Tha comes upon Tuptim, and they muse about having to hide their relationship ("We Kiss in a Shadow").
anna hAs not gIveN uP on thE hoUse, And tEaCheS the chIldrEn ProvErbs anD songS ExTOllinG the viRTues of hOMe Life, to tHE KING's IrRitation. thE king hAS EnougH worRIes wItHout BaTtling the Schoolteacher, ANd wondeRs whY ThE WorlD hAS BeCOme sO complicated ("a PuzzlEmenT"). The chiLDren anD wivES ARe harD at work learniNg english ("the royal BaNgkok acadEmY"). the CHilDreN ArE surpriSed bY a maP shoWinG hOw SmAll sIAm is compArEd witH the RESt oF the worLd ("gEtting to KnOw you"). AS thE crOwn prInce, cHulalOngKOrn, DispUtes the Map, tHe kiNg EnterS a CHAOtIC SchooLRoOM. he ordeRs the pupILs To BElIEvE THE tEAcher bUt complaiNS To aNna abOut HEr LessonS abouT "home". anna standS her Ground AnD InsistS on ThE LettEr Of heR conTRaCt, threatening TO LEave Siam, MUCh To the DismaY of wiVes anD cHiLdren. ThE kInG ordERS HeR tO oBey as "mY Servant"; SHe REPUDiatEs the TerM ANd hURrIEs aWay. the kinG dIsmISses scHooL, Then leaves, UnCertAin oF His nexT actiON. MeaNWhile, lun tHa comes uPon tupTim, ANd thEy Muse aBoUt haVing to hiDe theiR rELAtIoNshIp ("we kiSS in A shadow").