Best to try this one once you've 100% the level as you no longer need to worry about the timer.
When the level starts, turn left and head to the furthest chest, the fairy will appear to the left.
Then turn right and head to the tunnel (where you exit from collecting the rings), the fairy will appear just to the left of the tunnel.
Then continue around the cliff and follow the line of lights and head towards the furthest one (it has the semi-circle of roof-line in front of it) and the fairy will appear to the left.