Hou ejected his quasi-Nascent Soul from his body, he then sat in the Sky Solidifying Spring as a soul. His entire being was being assimilated and trying to be turned back into laws but he persisted.
Yue saw what happened and begun the plan. The Celestial Ink fought against the forces and sprung back onto Hou's body.
The black blob of ink stretched over Hou' skin then pushed inwards. The Celestial Ink has its own consciousness and so Yue used Flowing Divine Script to help the process.
This was a similar process to what Yue did initially to make the Celestial Law Amplifying Physique but now he would do it permanent and more.
Yue had a sort of inspiration presumably from True Sage of Celestial Ink and knew exactly what he needed to do. The creation of a Spirit Stone Soul is essentially similar to what traditional cultivators do, creating a sort of inner world.
Yue started to create the new Spirit Stone Soul, but this one was a different than the usual. The usual method was the combination of soul and body but Yue wanted to do soul, body and consciousness.
He first began consolidating the Celestial Ink into Hou's body. Each law was entrapped within the Ink. His entire being suffocated by a black goop. Yue then started to use the Celestial Ink's special properties to start changing them.
First, the ink and body were melted together, now that they were connected physically, Yue began dissolving those laws he trapped into the Celestial Ink.
The bones snapped and crackled into dust, dissolving into the ink around it. The blood diffusing outwards, red to black. The skin burning off and bubbling before being formed to ink.
Then Yue began the creation of the Spirit Stone once the ink and body were fully merged. Now instead of Hou, there was a vaguely human shaped blob of ink within the spring.
Lao Zu watched from the outside with fascination, when the ink first began moving he flinched but now he watched carefully. He started to monitor what was happening, in what stage it was.
Once the ink was merged with the body, Lao Zu swung out his arm. In that action a small parcel of energy's shot out of his hand and shot through the spirits and into the Celestial Ink.
"Just like you said... True Sage you..."
As Yue was working on the next method with the inspiration from True Sage of Celestial Ink, the energy from Lao Zu was absorbed. He shook and the Celestial Ink resonated.
"That's it!"
The bad been given the rough idea through the remnant parts of True Sage of Celestial Ink but Lao Zu sent him what he needed to do fully. Each step, what he needed to form the Spirit Stone part.
Yue began moving and for the next hour, Yue and Hou withstood the power of the Sky Solidifying Spring. Hou watched onwards as a quasi-Nascent Soul. He was being assimilated back into laws but he could resist it due to the nature of the Nascent Soul despite it not being fully formed.
His Soul and Consciousness were together as one and the willpower produced blocked the assimilation from progressing. However, this wasn't without pain, throughout the process Hou felt excruciating soul wrenching pain.
However, Hou had died multiple times, been reformed and felt huge amounts of pain. He could still feel the pain but he could deal with it and stay concentrated.
Yue too had huge amounts of pain as the Celestial Ink spread and morphed in order to do as the Spirit Stone Soul needed. The method was meant for a normal soul, not ink. All the while, he had to defend against being assimilated all around him.
He could not afford even a moment of distraction. Finally, after that hour, it was done. The Celestial Ink hardened and became like obsidian. A sharp glass like surface with a slight translucency which showed galaxies trapped within. Then the surface shimmered and cracked.
The hardened Ink shattered and showed Hou's appearance below. The striking pink hair, even more vivid. The face became slightly older, not in a bad way, just more refined.
Hou saw his opportunity and in that moment the hard shell shattered, he entered back in. His quasi-Nascent Soul pushed against the body then slowly seeped back in, it formed around the whole inside of the body like a liquid.
Then the Sky Solidifying Spring shook. Hou opened his eyes, squeezing his fist and moving his strength laws. Hou could feel the difference, before he was a real body made of laws but now...
It was like a body of pure laws, held together with the spirit stone shell. It still worked like a real body but no caring about the physicality, just the laws.
Hou circulate this strength laws as if they were any other laws, much easier and stronger than before. He could use them just as well as he could use sun laws before.
He used the strength laws and thought of his impression of strength,
'Something that pushes against others. It does not care for anything else, it does what it's want. Strength isn't about something special, it is the idea of being able to do what you want!'
With that his laws flashed, a new expression forming. Instead of swimming through the Sky Solidifying Spring, Hou simply used his strength.
The strength needed to make his reality become true, he walked through the spring. The solid air snapping under his pressure. Spirits contained huge amounts of laws, he could only access a small amount when his body was tied with physical rules. Now he was a combination of laws, he could bend himself to his will more easily.
He used the strength laws to push out the spring, shattering it's shell and releasing willpower, mental energy, from his feet. In that mental energy, he contained the idea that there is ground there.
The invisible laws throughout the sky activated and became solid allowing Hou to stand beside Lao Zu.
He used to be the same size, a small bit shorter. But now Hou had grown and surpassed Lao Zu by a significant portion.
"I've done it, I formed the Spirit Stone Soul," Hou smirked while internally noting,
'Well not 'me', it was Yue'