Ignore the Lookout Trail on your right and continue on what is now called Crags Road.
Here, the trail descends from the small pass and enters a long flat valley. This area was formerly Century Lake - an artificial lake built by the owners of the Crags Country Club for fishing, duck hunting, and casual sailing. Over time, the lake silted up, and now it's more of a small pond with a long marsh, which is now home to migratory birds in the winter months. You don't really get a good view of the marsh from the north side, but the trail will take you closer on the return trip.
For an additional bit of distance and elevation gain, you can take a side trip on the Lookout Trail here instead. The trail climbs north toward the Mulholland Highway through the rolling grasslands, then turns back down southward as the Cage Creek Trail - POI 7 on the map. This trail is pretty exposed, and should probably be passed over on hot, sunny days.