KojiSan
Great chapter! Loved it! Can't wait to see the fight next chapter! The butterflies will fly! Heheheh. Though, it might be better to humiliate Zhao instead, burning not only his atrocious beard, but his hair too! He'll have a true grudge by the time they encounter each other again at the North Pole. Personally, I hope Madara DOES spare him for the "just in case" things go differently during the North Pole arc if he dies right now, but also because it'll be funny when they encounter each other again when Zhao is left permanently bald and possibly scarred like Zuko was by his father. HEheh
It might be interesting that Madara teaches Kiliya some water element techniques that were mastered by Tobirama, even though he never used them, he has the sharignan and must have copied them. the water condensing technique for waterless areas and the precise manipulation of water to create ultra powerful jets capable of cutting through anything would be downright handy. In my opinion, as a woman in north water tribu she was never fully trained as a waterbender, so seeing her develop those skills would be nice.
In the avatar, something has always bothered me. I want to believe that the firebenders managed to kill the airbender culture, but I find it hard to believe that there were no survivors of the attack and he managed to kill all airbenders at once. In my opinion the surviving airbenders must have had descendants, there must exist somewhere by living people among the populations that are able to airbender but just don't know and never knew how to use their abilities. (a bit like katara who already struggles to master water with her parchment, while water remains something tangible... so mastering the air without a teacher and without a parchment, it must be a hassle...)
I think there is a good chance that Zhao will run away or the MC will let him run away. Thus leaving Lord Beifong in another obligation to break the contract because his identity as "Greedy Ghost" will be exposed. Even though he kills Zhao and all the soldiers, the enmity with Lady Beyfing has grown too strong and Madara will leave. I see him building a versatile team, much like the White Lotus or Zaheer, a really combative team that can assault a spot and succeed. Madara is a firebender, Kiliya a firebender, Jackie would fit in well as a martial artist without abilities, remains an earthbender (for the earthbender a Ghazan ancestor might be interesting, lavabending is overpowered)