I've already talked and convinced the imp to council of sevens but i dont know how to get out of this world. Apparently the teleporter stones dont work in this magic world

There should be a magic orb in your inventory now (miscellaneous section), which you can use to get out of that area.

Make sure you've gotten the level-up jug before leaving, as there is no way to get back after that, short of reloading an earlier save.

Thanks raze