Oh nice! I'm starting to get kind of a classical painting vibe from it now. Not sure if it's the subject or what, but I like that.
As for making it more creepy, I think that you could darken the whole thing quite a bit and then bring back some of the light from the lantern. Because we all know that dark equals creepy... right? But seriously, I did a quick try to see what it could look like. You'll judge if it's something you'd like to try or not.
I might have overdid it a little, but I feel it does give a purpose to the lantern as it now becomes the main light source. As for the possesion effect, I just gave them both glowy red eyes, but I'm not sure if it work or not
So far I like where this is going though. So I'm looking forward to see where you go with it.