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Mister Sifu is permissible. As is Celestial Master.:D

Your disciple/apprentices should call you Master. But if you think anybody else should call you Master, you will be very disappointed.

The use of shifu is warrented in some cases, but certainly not by a kung fu teacher running a commercial school in the US. Demanding the use of it by Chinese coaches in the US shows a grave...

Shifu in no way means "instructor". You call a guy "Shifu", usually, in two cases:

1. You have entered into a man's occupational space, in which case he is the "master" of his domain. An example...