The game is Minish Cap
It is an item.
I am a mysterious thing.
My insides probably aren't mellow.
I do wish I could transform!
Like a puffy strong fellow...
But what I can do is ok.
Heh, I make opponents turn pale!
With fear, that is. But yuck! Their belongings tastes like mail...
I'm also...
I got one!
We don't have any flour here,
But why not settle down for a beer?
You're big and you're strong, you can handle the drink,
Though I must say, you don't look like Link.
(I found this on another forum.)