It's been a good while since I've played, but I think level 7 sounds like it should be right. the thing to do for this is to take down the Waltz first and steal from the ice lion until you get a mythril dagger. You're trance meter should trigger during the begginning of the battle and you should have Tidal Wave if you got Mage Masher in the begginning. Use tidal wave to kill Waltz and hit Ice lion with everything you have. You would have to heal with a potion a couple of times though.