There is an entrance to a small dungeon in the middle of the mountain wilderness.Inside is a Death Lord and two Gibbering Heads. Potentially more useful than Diamond Eyes is the Giant Sword that is dropped by the Death Lord upon his demise - you need a mook figting tyoe to use it though.
It is best to get death lords into close up battle ASAP, they tend to fight then rather than cast toxic cloud and death wish as is their tendancy from a distance. If your party is of only moderate strength these spells can be devasting.
I have found this battle much easier than the Death Lords etc in the SE wilds. The MW battle is winnable with level 12 characters. The SE wilds probably needs level 15 characters or better unless you do not multiple reloads.