i dont know where to find magic fire , still stuck there i follow walkthrough but there is no but ..
the fire for the magic circle... you don't need to find fire you need Elven root :-
1: make sure you already got the busty slime's jelly for the magic circle.
2: make sure to unlock the top floor of the abandoned tower and talk to the mistress for atleast 2 days so she tells you about elven root.
3: Go to the fairy forest to the left hand side of the forest and fight and defeat the Alarune to get magic pollen.
4: At night time and Night time only... go to the elven camp south of the abandoned tower and talk to the elf dude around the bottom left side tent they guy that buys/sells fairy dust... he will exchange magic pollen for 4x elven root which you can use to lite a fire for your magic circle thust completing your magic circle.