2nd year
James
It's the beginning of second year when James finally discovers Remus’ secret, (or rather Sirius found out, and, possessing no ability to keep his mouth shut, told James almost immediately). They told Pete soon after, and the 3 of them spend hours upon hours in the library looking for a way to help Remus. Sirius in particular, seems determined to help, despite Remus’ insistence that he can't. So, naturally, it was Sirius who found the answer, just a few months after they had found out, Sirius rushed up to him excitedly telling him that they could become animagi, and could stay with Remus on the full moons. James agreed instantly (he never missed out on an opportunity to do something he shouldn't be, especially if it was helping a friend) So the next few months or so were spent researching the animagus transformation.
James also made the quidditch team second year, chaser, winning him even more popularity than he had had before, at 12 years old, James was on top of the world.
It wasn't until the middle of second year that James asked Lily out for the first time. And in true James Potter fashion, he did it in front of the whole school, probably a bad idea, in hindsight. He had been sitting in the great hall eating breakfast. Lily was almost always slightly late to breakfast, and she always looked like she had just woken up, it was adorable. But that morning, when Lily walked into the great hall, James shouted “oy Evans, go out with me?” Lily blushed slightly, but simply rolled her eyes, smiled and shouted back “in your dreams Potter” and then went to sit by Mary and Marlene.
James didn't let this deter him, from that day on he asked Lily out at least once a week, always the same line “oy Evans, go out with me?” always shouted, across the great hall, down a hallway, across the common room, out in the courtyard, into the quidditch stands during a game. He always got the same answer, rolled eyes, a small smile and “in your dreams Potter” shouted back, she smiles every time he does it though, so he doesn’t stop.
Since asking Lily out, Severus Snape seems to hate him more than he ever has before, James wonders about it, it's not like he has ever seen Snape and Lily together, he chalks it up to Snape simply being a massive dick and thinks no more about it, except of course to pull every possible prank on Snape.
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Lily
Lily's second year is much the same as her first, she puts all of her energy into her school work, she is still easily the top of her class, and she finds she has a particular knack for potions. She spends her afternoons studying in the library, usually with Remus, sometimes alone. She has noticed that Remus tends to disappear for a day or two every few weeks, she wonders about it, but doesn’t ask, Remus will tell her in his own time, if he wants to. She's not going to jeopardize this friendship when Remus is finally actually talking to her like a normal person.
She spends her free evenings down by the lake with Sev, who, despite still ignoring her the vast majority of the time, is still the same way he has always been when they are alone.
She talks to Mary and Marlene late into the night, so, overall, Lily is content.
James asked her out, not just once, but constantly, always loudly, always publicly. It's incredibly irritating, but for some reason, Lily cant find it in her to be truly mad at him for it, she always says no, but she always smiles at him.
Over the summer her and Tunny have, well, not made up, but at least come to a mutual agreement to leave eachother alone. It makes Lily sad, she misses her big sister, but at least it's better than fighting with her. Her parents still write to her every week, and she always, always, always, writes them back that same day. At 12 years old, Lily is perfectly content with her life.