Because Lily lacks any body technique, and has some brains for strength, her combat technique is very simple.
Just turtle.
Hide and fight behind the turtle shell.
She uses the Thousand Mechanism Cocoon to protect herself within, allowing the little Daoist to unleash Taoist Techniques and Talismans upon her.
All attacks are neutralized by the arrays and armor on the Thousand Mechanism Cocoon, while Lily rolls around the little Daoist like a dung beetle with its ball.
The little Daoist tried to get close and use his Taoist Sword to break the Thousand Mechanism Cocoon, but was forced back by the well-timed Thousand Mechanism Thunder that Lily threw at him.
Only after Lily roughly figured out the little Daoist's methods did she release the Thousand Machine Cannon, flying nimbly in the air and finally firing a shot from a tricky angle.