In the middle room -- you guessed it, is Tiggy. Being possessed by the staff, he doesn't know who you are. The other party members, having seen enough of his rein, decide to attack him, and don't get far.
Here's the trick. If you've got the right sword equipped on Eny, you win. If not, well try again. The Mystic sword will cut right through the staff, and as the staff falls at Tiggy's feet, he comes to his senses. You mission, however, is not finished, because during the commotion of Tiggy snapping back into it, Rider disappears and so does the staff! You decide that you should head to the Keep (north of the forest, where Eny was imprisoned at the beginning of the game.) Tiggy learned a few things he didn't forget while having the staff, like some awesome magic spells. This will help a lot.
As you may have noticed when you finished the beach battle earlier, a path opened in the Big Map to a farm (East of Flowey.) We didn't discuss it because the optimal strategy is to go there AFTER Tiggy joins your party. Yeah, there are a few knick-knacks in the farm house, but the real treasure is the cows. Talk to each of the four cows, then go talk to the farmer inside. He'll give you all a tall glass of milk for being nice to his precious animals, which will give each of them 100 level points!