So we all know the Lich is now mega-cute, and Jake likes him a lot, plus he smells neat. BUT IS THIS NOT WHAT ITSEEMS? The Lich was mutating backwards (hehe) into his former younger self, but this must've stopped as far as when he was mutated in The Great Mushroom War, because we notice that The Lich's right horn (your left) is still broke. Creators of AT are weird and wacky, and practically blow our minds with their  "The Lich is now cute" but we also know that they don't keep the same story once....

My theory: "The Lich will soon realise his true powers again, and accidentally burn/spawn/destroy something. TT and Mr.Pig will try to stop him, but accidentally get hurt in the process. The Lich will find his "magic well" and gain most of his powers back." <---- My theory isn't 100%