This does infinite damage, infinite card draw, infinite card discard and infinite sac triggers. Note that the discarding is larger than the card draw so you'll never end up with a hand with cards.
This combo is relatively simple, but easy to forget one crucial part: Mikaeus gives non-humans +1/+1 along with giving them undying. This means that creatures can never die from using their effects to remove all their +1/+1 counters, meaning you need a sac outlet to kill them.