Instructions
Play the Sun Song on your ocarina immediately after receiving the Pocket Egg to make it hatch into the Pocket Cucco. From the Cucco Lady's house, go to the center of town and into the house to the northeast -- it's one of the largest houses in Kakariko Village.
Enter the building through the door near the bottom of the stairs to find Talon sleeping in the house. Equip the Pocket Cucco to one of your "C" buttons, walk up to Talon and press the "C" button to pull out the Pocket Cucco. It crows, which awakens Talon.
Return to the Cucco Lady after Talon runs back to the ranch. Press the "C" button again to show her how happy the Pocket Cucco is and she'll take it back and reward you with Cojiro, a blue rooster and the next item needed in the quest for the Biggoron Sword.