Go to the main hall to see a short cut-scene.
Talk to both Captain Ballard and Lord Tavorick himself.
You’ll find some explosives in one of the surrounding rooms(1).
Suggest Ballard to use them in the barricades.
Also, tell him to block all the doors.
Give them orders to secure the house and go upstairs(2).
After a short scene one of the guards will alarm you that the situation downstairs has gotten pretty nasty.
Tell the two guards to stay with Tavorick and go down the stairs.
You’ll be attack by some Mephits, Succubi and Erinyes.
Go down again and make your way to the crypt(3).
You’ll have to fight him.
You’ll find her in Moonstone Mask in Merchant Quarter(N2-6).
After you enter the inn, talk to Ofala and head upstairs.
Defeat all the lesser demons and find the warlock, who’s already killed Melia.
He’ll summon two lesser demons and disappear.
When you deal with them, head back to the castle to tell Nasher about everything you’ve seen.
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