This video shows the first 4 stages. There are many many more.
As you can see in the video, you navigate through portholes on a flying carpet listening to a Russell Lieblich tune to get to the genie's hideaway. There, you have to listen to the genie and reproduce the notes by banging on the gongs. If successful, you basically rinse and repeat. Rest assured that things get harder as you go deeper in the game.
In the gong game, you have to wait until the genie plays all his notes before starting the banging. It took me a while to figure that thing out.
Feel free to check the Master of the Lamps manual. For some reason, you can also find the Commodore history in that manual.