Name That Trauma:: Reader Kirby R. on a Creepy Yarn Collection

Hello! I just absolutely love your site and I've been thinking for a while now about asking for your help – you've been so helpful to so many people, maybe you can help me too! I'm trying to find out anything I can about this collection of kids horror stories that was published sometime in the early 90s or later 80s – I've been looking for it for so long unsuccessfully that I'm beginning to think I may have hallucinated its existence. Anyway, I had the book in elementary school and I believe it was written by one author, it had illustrations and a featured a few different tales but I can only remember two with any clarity.

One involves a little girl who falls asleep on a city bus and upon waking gets off at the wrong stop. Now lost in an unfamiliar part of the city, she finds this ball – of twine or yarn or something like that – and she begins to unravel it as she walks. As she's unwinding it she comes upon several scraps of paper with warnings written on them that say things like "Stop!" and "Don't Go Any Further!" When she finally does get the whole thing completely unwound there is an eyeball at the center of it and it is at this point that a homeless woman appears and comes rushing at her, yelling, "Can't you read?!" And the homeless woman is, of course, missing an eye.

The other story I remember involved a family that has just moved into a new house and one by one the family members disappear into the basement and do not return. Finally only the frightened son remains and he too ventures down and encounters a monster. But it is a friendly monster who has a cake and wants to welcome the family to the house, and everyone is alive and unharmed. If anyone could help me out with any information at all about this I would be so monumentally grateful. Thanks for taking the time to read this, I really appreciate it!