Just beat the level using the Matryoshka doll.
It was hard, but it wasn't the circle pad that made it hard, it was the shape of the doll.
Just beat it too, after around an hour of trying.
It definitely would've been much easier if the joystick was more precise. You often have to make several extremely minute adjustments in succession in order to avoid running into anything, which is something that the circle pad just isn't capable of doing.