This ancient Asian fellow might look harmless, but he has the power to conjure up a big, evil Dragon/like apparition that will attack you mercilessly. As soon as he sends it your way, he becomes transparent and invulnerable to your attacks. Your best bet is to use the Daring Dash and run the opposite way to avoid the apparition at any cost. Using your Daring Dash will also provide you with shield protection, so keep it up. Eventually, the Dragon will tire of chasing you and head back to his master. This is your cue to charge up your Hammer for the big "smashy smashy". As soon as the Dragon disappears back into the Magician, the little guy goes on the move. Follow his sparkly trail until he stops, then let loose with your weapon. Repeat this one or two times and his soul will fill your cup.