I haven't seen this thread before, so here are my two tips:
1. Digdoggers: Immediately after blowing the whistle, have your boomerang ready to whack the children. You can have all 3 children stunned if you're quick enough, and it's not hard to be quick.
2. People have been mentioning using bombs to avoid other traps that will hit you for greater damage. I find it much easier to use a candle and run into the flame, especially when crossing paths of spikes. For the first final boss of Dreams of Yesterday, I found this technique to be essential in getting through with minimal damage.