Clouds is the second world that unlocks, and you can find the Clouds Wand on Clouds Level 3, near the end of the level.
This can be missed, but as you can replay any level whenever you want, it's not 100% unmissable. To get to the altar, follow the path after finding the chained up Parrot. It's not a difficult path to take. Ill update with a screenshot as soon as TA recognises it.