
Continuity mistake: When Annie Wilkes is shaving Paul Sheldon, when she is almost done she stops shaving and talks to him about something briefly. Before she stops talking there is still some shaving cream under his nose. Then when the camera goes back to Sheldon, after she's done talking, there is no shaving cream under his nose.
Answer: According to the book, she goes to what she calls her "laughing place", itself a reference to the Disney movie "Song of the South", in which Brer Rabbit sings about having a "laughing place" where he goes when he's feeling blue, to cheer himself up. We can presume Annie has some cabin or clearing in the woods where she has made her own "laughing place."