Ngoo is on-loan at the Jambos from Liverpool.
Dalglish told the Scottish Sun: "Michael signed for us because I speak better English than Fergie!
"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.
"It's not going to do him any harm to play first team football. I don't think he's going to put Luis Suarez out the first team at Liverpool or Daniel Sturridge. That's a little bit too much to expect for him but being at Hearts won't do him any harm.
"It was fantastic for him to play in a semi-final in his first game and score against Inverness. Then he went on and scored in the shoot-out as well. That was just a day after he came up to join Hearts, so that was a great start for him. Now he is looking towards a final at Hampden as well.
"It has been a great experience for Michael - and it can only stand him in good stead."