I forgot to post it here, but I did post it on the Discord a few days ago and this was used in my WR run a few days ago. This is what I found to save time when I was doing practice a few months ago. I'm referring this as Lava Skip or Lava Monster Skip. You still have to go through the cutscene, but it will get you directly to the next level when done correctly like below:

(I highly recommend being very close to the edge before moving off after drawing the water.)

UPDATE (07/22/2021): A faster way to perform the skip has been discovered during my Derust run earlier today. It now saves more time than the earlier instance.