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The first phase of the battle consists of Kholdstare just being in a block of ice while making ice fall from the ceiling. To melt the block of ice, use the Fire Rod around eight times. Alternatively, you can use the Bombos Medallion a single time to melt the ice. Once he is exposed, he will split into three eyes moving around the room. The sword is easier, but the Fire Rod is more affective. Magic shouldn't be an issue in this fight if you brought a Green Potion with you. If you have gotten the magic upgrade from Kakariko Village the fight will be much easier. Fairies and such might help as well, but magic is more important in this fight. After killing all three of the eyes, take the Heart Container the third eye leaves behind, then take the fifth Crystal.