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I just started this quest last night. Indeed a toughy to solo. I sometimes get five total dwarfs/penkos on me at one time. I've been all over that place, and still haven't found the book. I'll try...

I finally finished this quest last night when trying to flush some old quests.

I have a 56th Warden, and so I used stealth in the tough spots. With the aggro range shorter, it was easier than when...