Shit! I never got to help that one student get healed after Master Li dealt with that one Lotus Assassin on the boat. Guess next time I play I'll remember to do it.
As for the Lion Shrine, I collected all 3 coloured lion statues. There is a tomb by the waterfall just outside the school. I dropped a coin in the tomb as an offering, picked up the lion piece, and brought it back to the shrine at Master Li's. The lion piece plays a crucial piece in solving that puzzle, which involves blending 2 colours to make a 3rd colour.