Pause button is good. Do you think you could add a return to main menu option too? That would make it easier to restart without quitting the game and relaunching every time.
Another nice touch would be a mouth opening animation for when you shoot fire (If that wasn't in the plans already).
I've run into one bug with water so far: if you fly down fast at the large pool of water, you'll get put into this weird stuck state where the camera freaks out and starts shaking like crazy. Going into ball form breaks you out of this, and launches you with any momentum you had stored up (which was actually kinda fun lol).
Last thing: are you supposed to be able to pause during dialogue? Doing so doesn't seem to break anything- just wondering if that was an oversight.