vAddicatedGamer: Uh, no offense. You could have at least waited to see what happened (until "Game Over" screen appears) - unless, you're playing on Insane?
I did continue playing after he spotted me the first several times. But each time after a few seconds passed and either the fight music started playing or a group of guards would come in through that gate that is right next to the cook, I figued why waste my time?
If touching your hand to a hot stove 3 previous times gives you a burn, why would you think you would get a different result on the 4th, 5th or 6th time?
The only reason I was able to figure it out finally was because I tried sneaking back around the tent he is in front of. I knew he would spot me if I tried to go past, but I figured maybe I could get close enough before he spotted me to knock him out. And when I got close to him to try and knock him out I noticed the "Cast Axii Sign" prompt.
You see, the solution to this stealth scenario runs contrary to what someone with a working brain would think is the solution.