wot r we actually looking for here? item? place? person?

A signal of some distant comfort --> i'm guessing the turtle's paradise letter next to tigerlilly's weapon shop in cosmo
The world-loving Indian shows clear --> tigerlilly's shop is dis[playing the letter
An acquisition of butterflies can be made here --> butterfly edge
The prize may decrease your fear --> butterfly edge is the strongest sword in the game at that point

i'm gonna guess it's the turtle's paradise newsletter ur wanting!?