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Buffalo are one of the toughest enemies in the game. They are found in the Dry Valley and the Rune Canyon. They are sensitive with very good eyesight, so they are able to spot you from far away.
They are very tough enemies, dealing 2 whole hearts (4 points) worth of damage when they hit you.
It is easy to avoid buffalo altogether, but in some cases you need to get near them, like when recovering the Ringmaster's Outfit.
A good way to stun a buffalo is to enter its perimeter, make it charge towards you, then when it gets near you move back out of it. Then, while it goes back to its original position sneak up behind it without making too much noise and howl. While doing this, it is also important not to get in front of the buffalo, because you will not be able to evade its attack. Buffalo rarely sleep and if they do, it won't be for long.
Despite Casbal the Pekingese telling you you can't run away from a buffalo, it is actually possible to evade one by sprinting away from it (rapidly tapping the circle button for the PS2 version or moving the dog paw cursor for your Wii Remote as far away from your dog as possible and holding the B button for the Wii version,).
It is also possible to retrieve a Guitar accessory if you are able to successfully sneak up on them and make them faint.