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At the end of the previous quest, you learned from Burk (#1) that Kanred's tutor had returned to the Dryad Outpost during your absence, but that the people of the outpost had chased him off, and that he had escaped into one of the caves in the Blighted Hills (#2).

You'll find the tutor, who will (with no real surprise) turn out to be the Overmage, at the far eastern end of the Kelvaran Waste (#3). The Overmage will explain that he is one of the Cinbri, and that his goal is to pave the way for the return of his people. He'll then try to recruit you, but you won't be able to accept his offer, and eventually the conversation will turn into a battle.

Of course, this is still Part 1, so you won't be grappling with the Overmage just yet. Instead, he will leave, and in his place you'll have to deal with Kikrak of the Morden and a Voadyk Familiar. The familiar isn't anything special; it will just get in your way. Kikrak is who you'll have to worry about, but he'll fight just like Kanred did, with the exact same death spells, and so he should be easy enough to defeat if you're patient and can avoid his area-effect spell. Kikrak will drop the recipe for the Meteoric Shield when he dies.

When you return to the Dryad Outpost and talk to Sentinel Kirani (#4), she'll tell you that only Warden Celia can open up for you the way to Aman'lu, but that Celia just left the outpost to deal with another rogue mage. In order to reach her, you'll have to pass through a guarded doorway, but Kirani will be swayed by your arguments, and she'll give you Kirani's Password (Quest Item 3): "peace and order." You'll be able to use that password to pass through any of the guarded doorways near the Dryad Outpost.