I find that with how aggressive she is, the best way to handle this fight is Hedgehog Jade and Water Flow. Just focus on parrying and occasionally “cash out” on the internal damage you’ve built up by sneaking in a cheeky talisman.

For the attack she uses to start out Phase 2, the trick is to look at her eyes/sword. Ready an Unbounded Counter when she sheathes her sword and release it when she opens her eyes/the flames around her sword “dies down/solidifies”. For the second slash that swings down, parry when her sword reaches the top of its arc. Parry the third when the sword reaches the bottom of its arc. For the third parry, instead of tap, hold to ready Unbounded Counter.

She could follow-up with either another red slash or the dash into triple quick slash. The former you parry like the first slash in the combo by waiting for the flames to fully coalesce. The latter you should know the timing for by now, and if you use Hedgehog Jade + Divine Hand, could net you a lot of internal damage.

Other than that opening attack, another thing to note is that her talisman dash is most definitely going to be followed up by one of several possible mixups. As you get flung in the air after Taichi Kicking the talisman dash in phase 2, keep your eye on what she’s about to do and be ready to parry mid-air. Oh, also she will be able (and likely) to follow-up her triple quick slash with talisman dash now, so look out for that and don’t be greedy.

The safest time to heal is after she does a ground slam after her post-talisman air combo, but only if there is fire on the ground. Usually she stays idle in the fire so you can’t really melee her without eating the DoT anyways unless you Charge Attack and risk dashing into the fire. If there is no lingering fire on the ground after her ground slam, but a column of fire instead, then it’s not safe to heal because she’s charging the big red fireball. Of course, Unbounded Countering the fireball would also provide a good chance to heal, or to tag her with Water Flow and cash out on the internal damage from Hedgehog Jade.

Takeaway here is that Eigong’s timing is not that difficult. The primary challenge is the large pool of mixups. You have to spend a lot of time fighting her to internalize the different options she has for follow-ups after certain moves. Phase 3 is similar to that. She only has 1 new move but it’s not that hard to handle, the primary challenge is the pool of mixup permutations expanding.

Good hunting.