The 20-year old Liverpool striker, currently on loan with Heart of Midlothian, signed with the Reds as a teenager when Dalglish was involved with the youth setup and his former boss can see him taking the next step as he develops his game in Scotland.
Ngoo was also being tracked by Manchester United a few years back with Dalglish explaining the reason why he chose Anfield.
"Michael signed for us because I speak better English than Fergie!" he said.
"He is a great lad, he's good as gold. He came to us when he was 16, Rafa Benitez had just revamped the academy at the time.
"Our youth director Frank McParland had watched him play for Southend and liked what he saw.
"Michael was a big lad even then and showed he could play on the left as well as through the middle, so we gave him an opportunity.
"At that age his co-ordination was not what it is now.
"Michael worked really hard in training and if he gets a wee break he deserves it.
"He is a really nice boy, has great manners and it's great for him to come up to Hearts and get an opportunity.
"That's a little bit too much to expect for him but being at Hearts won't do him any harm.
"It has been a great experience for Michael - and it can only stand him in good stead."