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This quest is obtained when speaking with Icara at Homestead after creating the Death Knight Bane Skillbook. There is a powerful wizard in Hunter's Edge, and if you find him there will be hope to stop Leandra. You don't have to finish Eternal Winter quest though, for there is a bug right now (even in the latest version, 1.0.252) that you can pass the poisonous log without Icara's ring or the amulet from the wizard's house. See below Bugs section to know how to. There is a companion quest, The Hunt in Hunter's Edge, that will need to be partially completed to finish this quest. Jahan also has his personal quest that ties into this quest if he is in your party.
Talk with Icara to activate the quest and get Icara's Blessing from her.
Complete The Hunt in Hunter's Edge to gain access to the town.
Speak to the orcs and tribesman to find out more about the Wizard's House.
Go to southeastern end of Hunter's Edge and find the Wizard's House locked up tight. (Optional: speak to the guards at the entrance and win the RPS game for 8160 Charisma XP and/or kill them for 5100 XP each).
Follow through The Hunt in Hunter's Edge quest to find the Wizard's servants.
Talk to the Wizard's servants after showing them Icara's Blessing, and they will give you the Portal Activation Crystal for the portal to the wizard's house.
Entering the portal will give 4080 Exploration XP and immediately trigger the dangerous traps. This is unavoidable, so quickly run or teleport to the northern stairs.
Entering the second floor will give 5130 Exploration XP and a new Waypoint. There are no active traps like on the first floor, but there will be hidden/mirage mines all over the place. Memorize the locations, since if you get close they turn invisible.
Carefully enter the southern room and light the four candle holders which will activate the mirror.
Enter the mirror which will teleport you to the adjacent room. Pull the lever there to deactivate the barrier.
Enter the final room and activate the House Defenses Master Switch to disable all the traps in the house and allow the Wizard's servants to escape safely. Speaking to them will complete the The Hunt in Hunter's Edge quest.
Loot the Titan Dictionary, Wizard's Cellar Key, and Phantom Protection Amulet. The rest of the house can also be safely looted now, including Zandalor's Scroll on the first floor.
Head over to the poisonous log to the east of the Phantom Forest Waypoint. Separate a single character from the group and make sure they have the Phantom Protection amulet. Note: it does not need to be worn, you can keep it in the inventory as well. Send that character through the log for 4080 Exploration XP, then through the mist to the clear area beyond for 4080 Quest XP. Use the Teleporter Pyramids to regroup the party.
Make your way through the forest, avoiding or fighting the monsters found there, to the swamp in the southeast corner. There will be some Death Knights patrolling the place. Better avoid them until higher levels. Some Mud Lords there are tough also, and in the swamp there will be numerous Wandering Eyes that can be killed or if they spot you will summon Cyclops monsters. This can be a good source of XP for leveling up.
Optional: Along the way is a small earth elemental named Greal who will ask for your help and give some information on Shearah, the Forest Spirit captured by Balberith. This will update the quest and give 4590 XP.
There will be an abandoned shack at the far end of the swamp guarded by Cyclops and ghosts. Kill them all for 52480 Combat XP.
Enter the shack for 4590 Exploration XP and enter the hatch.
The Forest Spirit, Shearah, is imprisoned in a cage and there is a demon named Balberith nearby. You can either make a deal with him or choose to fight him, although you can still fight him after making the deal, so for full XP it's better to start with the deal.
If you choose to make the deal, Balberith will task you with killing another demon named Raalzen Ax'aroth. He is located near the path to the Source Temple beside the goblin group. This is a fire demon, so anything other than fire is fine against him. His pets should be dealt with from a distance first, though, since they will explode when killed. It's best to keep them all frozen or stunned as much as possible. Each of the four pets are 5700 XP and Raalzen is 19000 XP, totaling a nice 41800 XP. There is a chest there, but no legendary loot.
If you choose to fight, Balberith will show his true demon form. He isn't that strong, but everything around him makes the fight more complicated. The Tormented Ghosts will continue to heal him to full health, so dealing with them should be your first priority. If the fight continues for too long, Balberith will summon more Cyclops monsters every few turns. The four Tormented Ghosts are 5130 XP each, the original Cyclops group is worth 21990 XP and Balberith is 12825 XP. You could farm more Cyclops monsters if you let the fight continue without killing him.
There is an additional option if you have Jahan in your party. This option is part of the The King's Dark Deal quest.
Getting the Magic Rune Stone, either by the deal or by killing Balberith, will update the quest and give 12825 XP. Speak to Shearah for some information about the Source Temple.
Optional: Kill the caged creatures to the right of the main cage with AoE spells for 6500 XP each, a total of 45500 XP. Strangely they tell you to stop like an NPC would, even though no other Cyclops creature communicates.
WIP - better information for the part below!
Go to the Source Temple located in the center of the forest. There are many Orcs, Goblins and Demons in your way so be prepared. Watch out for a unique Death Knight, Death Lord, who creates a lava surface and teleports you on it to instantly kill you. Enter the Source Temple when you reach there.
Complete Inside the Source Temple quest and you will meet unconscious Zandalor at the end of the temple. The amulet he was wearing is made of a Star Stone, and it reacts to the Protagonists. Zandalor awakes, and talks with you.
You can use Tactical Retreat, Phoenix Dive and Cloak and Dagger skills or the Teleport Pyramids to jump over a cliff to gain access to the part of the forest where you normally can't reach unless crossing the poisonous log. Be careful that there are some level 17 enemies at the point where you land. The location is marked below. It's just to the right of the troll from For Whom the Troll Tolls.