The second dojo is located southeast of Town Center. When you come across the horse barn, there will be the riverway tunnel to the right (pictured to the left), inside that cave you will find several baddies.
In the second level of the cave (with the blue baddies) you will find the second dojo hidden in the wall. When walking around the end of the second level of the cave, you will see 3 lanterns. Just under the middle lantern is the second dojo (see picture to the right). To beat this dojo you need to grab all the bombs and throw them out of the area until the time runs out. The prize from this dojo is the item Skill/Dodge.
