Yes, there is FINALLY a sequel to Cute Knight, and in the grand tradition of sequels it is Bigger and Prettier and takes things to a Whole New Dimension. (That's 2D, not 3D!)
Differences from the first game:
You can now walk around jRPG style and talk to characters (with helpful flags for new content) instead of being stuck on one screen.
No more prostitution or incest*. But there is same-sex romance. And different-sex romance. And different-species romance.
The concept of 'sin' in an RPG - where most people want to go around killing stuff - is explored in more detail.
All magical spells must now be learned from experience, so you have to go around and Collect Them All.
Potions are replaced by food and a cooking system to go with the crafting system, so there are a LOT of recipes to discover.
Multiple dungeons, each with a 'boss' encounter.
And, of course, improved graphics and sound, including a lot of hand-painted watercolors and hammered dulcimer.
Otherwise, the underlying game idea is the same. You're a girl with a mysterious past, running around from the ages of 18 to 21 taking classes and working at part-time jobs to raise your skills so that you can figure out what to do with the rest of your life. While occasionally fighting monsters, finding treasures, and solving other people's problems like a good little RPG Hero.
Screenshots and demo here: http://www.hanakogames.com/ckk.shtml
Windows-only for now; there may eventually be mac and linux versions but it's uncertain at the moment.
(* Not that there actually was in the first game, if you followed all the plotlines and understood what was really going on. But there were vague suggestions of it. And hey, if we can't get attention with vague suggestions, what is the world coming to?)