Grammar, Usage / "I see the man with sunglasses" - Help Paragraph Formatting + Dialogue? [3]

Please help formatting this dialogue excerpt; where should I start a new paragraph, or should I keep it in one paragraph. It looks choppy when in new paragraphs. Also, where should I indent?

PS; don't be confused by content, I just need formatting help. Thanks.
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stuff before... I see the man with sunglasses. I stop and ask him, "Who are you?" He responds, "I am everyone." He begins walking away. .... stuff after