Sul-Matuul, of Wisdom
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1. Wisdom's Test happens in the Cavern of the Incarnate. Matuul will give you a riddle of sorts that holds the clue to where the Cavern is. To find out what the clues mean, you'll want to talk to Nibani Maesa again, and also to the scout next door to Matuul.

2. The Cavern of the Incarnate is a bit more difficult to find than the last dungeon, especially if you have a general idea but don't know exactly where. I spent about half an hour being lost before finally finding the right way. Of course, I like to take shortcuts, but this particular time they weren't working for me… but feel free to try. Anyhow, head east, far east along the coast until you pass both the nearer Dwemer ruin and then the Daedric Shrine Zergonipal. I'd swim out off the coast when you approach the Daedric Shrine unless you feel daring.

3. Continue east past the shrine, once again on land, until there is a clear path south. There will be two valleys that run south side by side. Don't take the first one, the west one, as this leads to a dead end of sorts. Pass the first south-running valley and take the one furthest east. Follow the path past the two very tall spires (called Airan's Teeth), then up the mountain as it winds around. You'll finally come to the ornate door to the Cavern of the Incarnate. Wait or rest until the appropriate time (6am for me), and the door will unlock for you.