The previously introduced algorithm \sqema\ computes first-order frame equivalents for modal formulae and also proves their canonicity. Here we extend \sqema\ with an additional rule based on a recursive version of Ackermann's lemma, which enables the algorithm to compute local frame equivalents of modal formulae in the extension of first-order logic with monadic least fixed-points \mffo. This computation operates by transforming input formulae into locally frame equivalent ones in the pure fragment of the hybrid mu-calculus. In particular, we prove that (...) the recursive extension of \sqema\ succeeds on the class of `recursive formulae'. We also show that a certain version of this algorithm guarantees the canonicity of the formulae on which it succeeds. (shrink)