This kind of puzzle is called a Crostic.
The diagram is not a crossword. It is an exerpt from a piece of writing. Words end at the shaded squares, not (necessarily) at the end of lines. No punctuation is given.
Answer the clues as best you can, then transpose the letters to the squares with the matching numbers. (The letter in the square tells which clue it is from.) Then you try to recognise words on the diagram, and complete them. Then you transpose those letters back, etc., until the whole thing is finished. Three letter words may be "the", one letter words are usually 'a' or 'I'.
As an extra help, the first letters of the answers usually spell the name of the author, and the work the extract is from. (That's where the name, Crostic, comes from.)
The diagram, and the clues, are pictures, which I hope you can download and print (or it's going to be a very difficult puzzle!)