I got a lot of great suggestions on Metafilter about brain storming creative techniques, which I will post here when I have a moment.
Last night I just outlined what I have to do next, having sent Kate the First Chpater. Wow - the more I think about things, the more I need to do. It's like cells multiplying in a petrie dish under a microscope. I also took to my first chapter with a red pen and began "refining" - I was amazed that I had so many changes to make. Keep at it.