I included a Fairy Pond to appear after defeating Manhandla in room 22 (appears at 6:05) so that a player progressing onward can continuously use it (and abuse it) while reaching and before fighting the dungeon boss. For instance, while or after fighting the Darknuts in the room just north of this Fairy Pond (at 40:59), I would suggest going back there to heal before trying to obtain the small Key northeast (room 03). Hopefully, this use of the Fairy Pond should help you complete Level 2.