I can't save manually without something called Savior Schnappes. What is that? Seemingly I can only use "save and quit". Is this a bug? I'm in skalitz at the very start of the story if that matters.

Savior schnapps is one way to save the game. Bianca will give you one or two when you go to see her to get beer for your father. Another way to save the game is 'sleep and save.' This option isn't available at every bed/place you sleep, so choose your places carefully. If you manually save the game, it will consume a schnapps (you'll hear a swallowing sound) but if using the sleep option, none will be used. Stock up on them when you can- whether by stealing, buying or alchemy. Enjoy this game- it's a gem :P