Can I over simplify this for a minute?
I work with about 125 kids everyday and I can say they are not much different than people that I work with in this industry.
Some people are dogs, they follow you and will beg for your approval. Others are cats and are pissed when you look in their general directions. Cats don't need approval and do things their own way. Their worst nightmare is what you describe.
In my opinion you and your worker are both cats.
Two cats on a crew is tough.
To encourage him maybe challenge him as you said. Cats love challenges and want to race to the top. Give incentives for great quality work and cats are always the top performers. A crew of people is best made of cats and dogs. Dogs will crave your help and your criticism, but will always need your directions. I prefer cats because I don't have to help with everything.
I have a cat on my crew, exactly how you describe. I have the same issues. I try to lead by example. Instead of showing him how to do things now, I ask him, " Hey what can I do to help you?" This simple change has made all the difference. He wants to be self sufficient, and when I thought about it I wanted him that way too. When I treated him like my worker bee I got nothing out of him. Now I get out of the way and he shows the new guys the right way and is great. I just had to work with him differently.
Maybe read that book linked below or PM me and I will try to dig it out. It is a short read, but incredibly helpful if you are managing people. Just my two cents DVS.
"The best advice falls as softly as the fallen snow....."
(I met the author at his seminar for working with people. Nice guy, great book.)