Bottom right, between the man with the spear and the man on stilts.
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Waldo is to the right underneath the Unfriendly Giant. His sock is striped red and white like his shirt. Look for the Waldo holding his cane a weird way with his elbow sticking out, Shoeless Waldo is above his elbow.
It's by the stairs were Waldo is dancing with the canes
Waldo (Rare) - Any Dragon Fruit, Pink Love Berries & Red Star Blossom
it is in the area behind the butt of the fake lady giant with the yellow shirt