Have Dagger give orders:

If you get it right, you receive an Angel Earrings, if not then you only get an Ether.

As Steiner and Beatrix, you must defeat a Mistodon in the Square. Head down to the next screen where you'll fight another Mistodon. Head down once more into another fight. Head right where you must fight 4 Mistodon battles in a row.

Once you control Dagger, head all the way upstairs.

Once you control Zidane's party, head upstairs after Dagger.