I dream of Beer Head Armies.
Autocard is our friend. [c]Urborg Mindsucker[/c] → Urborg Mindsucker
You cast Cloudshift in response to the triggered ability in (4). Neither the 10/10 nor the blocking Loyal Sentry will be on the 'field to deal damage in (5). There will be a fresh Loyal Sentry on the 'field, but it's not involved in the combat.
Please autocard: [c]Shard Phoenix[/c] = Shard Phoenix.
using Loyal Sentry is more hilarious
It's not Logic, it's Magic!
Even if you blocked with a Tundra Wolves and cloudshifted it, you'd still take 0 damage.