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You can use the Map button to go directly to Sylph Atoll. This picture shows some other places you can go from Cloud City.
Here's the entrance to Sylph Atoll, where you get Sylphs. Talk to Alice to trade Essence of Water for Sylphs. It takes 60 Essences to make 1 Sylph. There's another girl in Sylph Atoll who does the same thing.
Here's a shot of the map where you can see the whole route to Sylph Atoll.
Once inside Sylph Atoll, you fight those little white guys, or you can also fight The Stranger to get a different kind of Sylph.
