XBox 360/PS3/PC: Pazzo is located in the Snow Store, where it can be purchased for 750 gold.
"Treasure Locator"Pazzo locates buried treasure for you. When Pazzo locates a buried item, he will hover over it, scratching at the ground. When you first buy Pazzo he will find the Skeleton Leg weapon in the Snow Store (which has no "X" marking it and will be very hard to dig up without Pazzo), presumably to demonstrate his ability and how useful he is to the player. Pazzo can also find the Ice Sword in the Ice Castle level, which also has no "X".
Pazzo is an often mentioned animal orb, even though he has little use after obtaining the Ice Sword and Skeleton Leg,
Can be seen at the barracks (Parade) flying above the party-goers.
In the end credits, the name "Pazzo" appears under "Special Thanks". This has caused speculation on why Pazzo is in the special thanks. Many think that Pazzo may be named after one of the developers' pets.