Like the Cat, the Midget is fast (even FASTER than the Cat), so using the stoplight here is a good idea, though it isn't necessary. He only runs to the right, so if you don't have the Stoplight you can just run left until you smack right into him. Also, note that you can actually hear him running in this video.
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The Dwarf is an Effect-giving NPC found in the Candle World. His appearance is of a colorful...