Oh yeah? Good catch, thanks again.
Also, the stranger is a she. It's actually an astral projection of the Ringmaster's assistant at the circus in your world. She uses the cloaked avatar to help guide you so that you bring the magic instrument back to her, so she can use it on the evil wizard/demon. She was the Princess of that land, hence why her father (the Shah/King) appears beside her as a ghost at the end :D