Episode 2
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I'm so disappointed in this series, though the second episode was better than the first (entirely for moe reasons), there's essentially no point in this premise and they're certainly not doing anything interesting with it.

She's seriously is just an elf. Or more realistically, she's a Jewish analog. They could have gone with that, or went for Romani or whatever other made up ethnicity they wanted and the series would be exactly the same.

I feel like I can predict the whole thing from this point, like the framework of any American Young Adult novel.

Without a significant shift to make it interesting, which they seem determined to write themselves out of, this isn't going to pass the 3 episode test.