You didnt really answer the question. There are 2 different final books. Celestial Fists & Book of Celestial fists.
I assume he ate on turn in because you turned in the demon fangs along with Celestial Fists (book) and not Book of Celestial Fists.
Mad Kaiaren gives you back the same book. Sane Kaiaren gives you back the Book of Celestial Fists.
So, again, check which book you have. If you have Celestial Fists (book), you can turn that into mad version. When you spawn sane version, you turn in Celestial Fists (book) and receive Book of Celestial Fists, which you then turn in again with fangs.
(Its pretty clear on the wiki, I just did this same turn in on Saturday, grats me on monk epic).
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