Chapter 5 of The Golden Compass -- now things are starting to get really interesting. Sylvia and I are both on the edge of our seat.
I really like the way Pullman drops hints about what's going on -- very graceful, they are not so cryptic you can't easily pick up on them, but they are not hammered into your ears either. A bit like reading a good whodunit. And at the end of the cocktail party scene, the transition to Lyra fleeing from Mrs. Coulter's house was handled very well. This book just feels elegant.
(Note from an adult reading a kids' book -- it was such an eerie feeling I had, to be identifying with Mrs. Coulter as I read her cruel disciplinarian lines to Lyra before the party. I can't recall ever feeling this way though I've read many children's books with authoritarian adult figures in them.)