Flown the Coop
Cado will stand vigilant over the entrance to Impa's house until you talk to him at least once. Afterwards, he can be found outside the chicken coop.
I have actually sometimes seen him at both locations simultaneously. I'm not sure if this is a glitch or if he's doing a magic teleport trick behind your back. So there's no need to wait and see if he's not at his post, head to the coop instead. The best time to try to find him there is noon, sit by the nearby fire to advance the time.
As with previous Kakariko Villages, it's time to collect some chickens.
- One is on the ledge on the way to the shrine above.
- One is on the roof of the armor store.
- One is in the garden just behind the armor store.
- One is by the fire out in front of Impa's house.
- One is by the bridge near the entrance to town.
- One is on top of the house next to that bridge.
- One is chilling in a small structure just downhill from the house closest to the entrance to town.
- Three of them are actually already in the coop to start with.
As usual, carry and then place/throw the chickens into the coop, then talk to Cado. If he is not at the coop, no need to advance time, go to your Adventure Log in your pause menu and set this quest as the active marker and it will point you to wherever he is at the time.
Your reward is a purple rupee.