Go to Dr Caligari's Sideshow (west of Thomas Johnson) and be there when 11pm rolls around.
The show will start and Dr. Caligari will tell the audience to ask his weird demon-friend a question.
Note: this is not the real version of Cesare, do not kill him.
When Dr. Caligari says 'Any other questions?' and looks directly at you, say When will I die.
Cesare will respond, 'Tonight' and both Caligari and Cesare will disappear.
At this point if you can hunt Cesare, then the real version has spawned.