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1 - Arrival
Your arrival on the second level of Icasaracht's Caverns is met by some Scrags, Greater Snow Trolls, Greater Ice Trolls, and a Water Kin Elemental in the pool to the west.
2 - Loot!
A few spell-casting skeletons called Iced Bones and several standard skeletons called Frozen Bones and Cold Bones have teamed up with some Bone Scavengers in an attempt to slay your party in this section of the caverns. When all of the undead and white wyrms have been wiped out, rummage through the bones and other debris to uncover four separate treasure troves containing 1524 gold pieces, two gems, a Wand of Lightning, a suit of Chainmail +2, and an Amulet of Protection +1.
3 - Loot!
More undead and another Water Kin Elemental will attack your party in this vicinity. Once they're defeated, check the two animal corpses for some broken armor, a Potion of Magic Blocking, a Potion of Hlil Giant Strength, a Potion of Heroism, a Ring of Infravision, and a Ring of Protection +2.
4 - Loot!
Another group of undead and a few more Bone Scavengers call the underbelly of this long-dead dragon home. When all of the resistance has been dealt with, peer into the dragon's ribcage to find some Gauntlets of Ogre Power, a suit of Mithral Field Plate Armor +2, a Large Shield +1, a Cloak of Protection +2, and a Bastard Sword +1, +3 vs. Shapeshifters.
5 - Xactile
Xactile is a Sahuagin priest dedicated to the dragon queen Icasaracht. If you're friendly towards him, he will provide you with standard temple services. If you would rather just get rid of him, though, you'll have to take down his Boneguard Skeletons as well.
With Xactile dead, you can loot his corpse for the Coral Plate Armor and a Mace +1. Regardless of whether or not you kill Xactile, you can plunder the trapped altar for a random magic item (such as some Mourner's Armor or a Ring of the Will-o-Wisp).
6 - Exit
The pathway inside this rack of bones leads to Icasaracht's Outer Temple.