As you turn around, you will find a chest near you. Crush it to get some crystals. Nearby, there is a door with a padlock that you cannot open. Then go over the pool of cold water you saw when starting the level, using the collapsing platform and kill the dog. Break the chest to get the red crystal and enter the next door.
You will notice a cage that you cannot open yet. Grab the balloon to go down to the lower level. There are two crates near you. One of them contains the yellow crystal and the other the first Gobbo. Then dive into the pond. Quickly kill the enemy with the harpoon before it can shoot you and break the two crates to get some crystals. Swimming upwards, you will find a golden key. Then enter the conduit opposite the one you entered from.
Here you will have to face the mini game of the walking crate again. When you manage to stomp it, you will get the second Gobbo. Then enter the door on the left.
You are back in the initial area of the level. Crush the chest on the left to get the third Gobbo and press the button to make platforms appear that will allow you to get past the pool of freezing water. Thanks to the golden key you can open the door on the right.
Use the two rafts to reach the suspended platforms. Follow the path, stomping the crates to get more crystals. You will find a button; press it to bring up other platforms. First, go to the bottom of this area. You will find another golden key, the blue crystal and a chest containing the fourth Gobbo. Go back and go up on the platforms that go up. At the top, you will find a silver key. After taking it, go down carefully, so as not to end up in the water and return to the previous area. Go through the small pool of icy water that you passed at the beginning of the level again and enter the door on the right.
Thanks to the silver key you can open the cage and press the button. Once you've done that, grab the balloon. This time you will land on some suspended platforms that you have made appear. Right in front of you is the fifth Gobbo. Turn around 180 degrees and walk across the platforms. At the bottom you will find a couple of clear crystals and the yellow crystal. Open the door at the bottom with the golden key and enter.
Use the platforms that leap out of the water to overcome the two pools. In the center, you will find two chests: one contains clear crystals and the other the pink crystal. You will then be able to open the crystal door at the bottom.
All you have to do here is follow the path by jumping from platform to platform. Be careful, because it is easy to fall. Halfway along the path you will find a suspended chest containing crystals. First take out the two Ice Dantini below. At the bottom, you will find a chest with the last Gobbo and the exit gong.