[Rhûn]

I don't believe there's a pause button but try using turn-based combat instead of real time, which you can do either by hitting space or in the game options (O). That'll give you an easier time in combat (especially as a mage).

Items are identified by "wise women" who are on the outskirts of towns. The first is located near the bridge at Shrouded Hills. There's another in Tarant to the extreme southeast of the city, past the docks and just outside the city walls. Most of them are visible from the town maps, just scan the edges of the towns for caravans.