  We propose field equations for the conformal higher spin system in three
dimensions coupled to a conformal scalar field with a sixth order potential.
Both the higher spin equation and the unfolded equation for the scalar field
have source terms and are based on a conformal higher spin algebra which we
treat as an expansion in multi-commutators. Explicit expressions for the source
terms are suggested and subjected to some simple tests. We also discuss a
cascading relation between the Chern-Simons action for the higher spin gauge
theory and an action containing a term for each spin that generalizes the spin
2 Chern-Simons action in terms of the spin connection expressed in terms of the
frame field. This cascading property is demonstrated in the free theory for
spin 3 but should work also in the complete higher spin theory.
