The second person indeterminate works better here in direct speech. He asks if he is a monster. " For indirect speech, I'd stick with the third person: He asks if he is a monster.
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For indirect speech, I'd stick with the third person:
He asks if he is a monster. She kisses him and proclaims, "When you love a monster, he ceases to be one."
He asks if he is a monster. She kisses and proclaims that when someone loves a monster, the monster ceases to be one.