yes, youki does drop it. youki is in a seemingly unenterable house in a dead end. I dont really know if you can just go in, or if you have to have a quest to beat him. I have just teleported to friends there.
There isn't a quest for Youkai, he's a hidden boss in the Tree of Life instance. His hut is at the far end of the map from the entrance, on the far side of a red arched bridge. He's got a huge number of possible drops, the Minotaur pet's one of the rarer ones. Good luck!