There was rumoured at this time the discovery of the first known (?) fossil monkey, but its tail was missing.  “Depend upon it, Daniel O’Conell’s got hold of it!” said ‘Adam’ briskly.[15] Yule was very happy with Mr. Hamilton and his kind wife, but on his tutor’s removal to Cambridge other arrangements became necessary, and in 1835 he was transferred to the care of the Rev. James Challis, rector of Papworth St. Everard, a place which “had little to recommend it except a dulness which made reading almost a necessity."[16] Mr. Challis had at this time two other resident pupils, who both, in most diverse ways, attained distinction in the Church.  These were John Mason Neale, the future eminent ecclesiologist and founder of the devoted Anglican Sisterhood of St. Margaret, and Harvey Goodwin, long afterwards the studious and large-minded Bishop of Carlisle.  With the latter, Yule remained on terms of cordial friendship to the end of his life.  Looking back through more than fifty years to these boyish days, Bishop Goodwin wrote that Yule then “showed much more liking for Greek plays and for German than for mathematics, though he had considerable geometrical ingenuity."[17] On one occasion, having solved a problem that puzzled Goodwin, Yule thus discriminated the attainments of the three pupils:  “The difference between you and me is this:  You like it and can’t do it; I don’t like it and can do it.  Neale neither likes it nor can do it.”  Not bad criticism for a boy of fifteen.[18]

On Mr. Challis being appointed Plumerian Professor at Cambridge, in the spring of 1836, Yule had to leave him, owing to want of room at the Observatory, and he became for a time, a most dreary time, he said, a student at University College, London.

By this time Yule had made up his mind that not London and the Law, but India and the Army should be his choice, and accordingly in Feb. 1837 he joined the East India Company’s Military College at Addiscombe.  From Addiscombe he passed out, in December 1838, at the head of the cadets of his term (taking the prize sword[19]), and having been duly appointed to the Bengal Engineers, proceeded early in 1839 to the Headquarters of the Royal Engineers at Chatham, where, according to custom, he was enrolled as a “local and temporary Ensign.”  For such was then the invidious designation at Chatham of the young Engineer officers of the Indian army, who ranked as full lieutenants in their own Service, from the time of leaving Addiscombe.[20] Yule once audaciously tackled the formidable Pasley on this very grievance.  The venerable Director, after a minute’s pondering, replied:  “Well, I don’t remember what the reason was, but I have no doubt (staccato) it ... was ... a very ... good reason."[21]