DISCLAIMER: Your Steps and Tasks may be different
Characters that were created after Patch Version 1.79 do not receive this Epic quest.
You must complete the Travler's Way quest first. This is the level 11 epic quest for Skalds.
Your trainer in Jordheim tells you he wants the hobyah named Rasczel's nose. He is said to be located in the deep forest near Jordheim.
Go to Fort Veldon, the hobyah's only spawn at night and can be seen from one of the Fort Veldon buildings, just West (loc=41549, 4816 Vale of Mularn).
There are many hobyahs. Rasczel is a named hobyah and Rasczel spawns there but he doesn't always drop his nose. Make sure you get the one named "Rasczel's nose", as there are lots of hobyah noses. (It's been mentioned that you can obtain Rasczel's nose from any hobyahs.)
Bring it back to your trainer for a magic item.