When you enter Break Time, hit Run and Select to reset the game just as Pac-Man's hat rises, revealing the fairy. When you start the game, Pac-Man's hat will be floating over his head for the entire game.
At the title screen, hold Button 1 + Button 2 and press Run. You'll enter the secret Game Options where you can increase your lives and turn "Skip" (level select) on. If you press Run again, you'll access the Sound Test. Press Run one last time to go back to the title screen. To enable the Stage Select, turn "Skip" on, go back to the title screen and start the game. You'll now see the words "Skip 1" on the screen, press Button 1 or 2 to select from any level.