Easy experience:
To easily gain experience, you will need a Chi-spell, Double Jump, and the ability to glide. You also need to be able to go to the “Forgotten Worlds.” When you go to the Forgotten Worlds, use the levitating pad to reach the upper part of the houses. Walk left until you see an unlit torch. Breathe fire on it, and it will open the drain next to it. Use it to enter into a cave. When you get in there you must phase through the dimension portal pad into the Dark World. When you enter, there will be two of the “bird” type shadow creatures on ledges, and three of the dark warriors with swords and shields. Defeat all of them and collect their money. The bird type creatures each give you 200 experience points. Each of the shadow warriors give you 240 experience points. After defeating them, go back out of the cave and into the Real World. Break open the wooden jar next to the purple levitating pad. It gives you a mushroom, a butterfly, and a lot of gems. Repeat as desired.
To easily gain experience, go to the regular world and cross the bridge to find Yetis. Keep going in and out of the level several times defeating the Yetis to level up. Repeat as desired.
Hidden Dragon Egg:
To get the hidden Dragon Egg, after getting the key, enter the hotel at Dragon Shores. Go upstairs and unlock the first door. The Dragon Egg will be on the shelf in that room.