You should have discovered this area during your chat with Dalton, a merchant whom you encountered shortly after dealing with the "Troll Invasion" event card. The Hodag is another trophy monster Amiri wishes to hunt as part of the ongoing quest Prove Your Worth, so if you’ve got time to spare, it’s certainly worth your while to go out of your way and hunt this critter.
To start out, make your way to the Abandoned Keep area, which you should have long since explored by now. The directions to the Hodag Lair will start from there.
- East (along the Murque River)
- South (cross the Murque River)
When you arrive, head northeast until Amiri speaks to you. As with Tuskgutter, she wants to face this Hodag alone, and unlike Tuskgutter, she probably has a shot at taking the thing on alone. Not that her solitary inclinations are enforced even the slightest, mind you. At this point in the walkthrough (if you’re following chronologically you should be at or very near level eight) the Hodag is a push-over, sporting a hefty amount of HP relatively unsupported by an Armor Class worth mentioning. Its Attack bonus is probably not high enough to worry your tanks much, although Amiri will almost certainly fare worse. Against a full party, there’s little the Hodag can do but roll over and die.
After it does so (and Amiri is done celebrating) continue northeast to find [Perception 7] some foliage you can search for a Shard of Knight’s Bracers. More loot can be found to the east on a corpse (two Potions of Shield of Faith and 172 GP, among other goodies) and two crates (one of which contains four Potions of Cure Light Wounds and a Potion of Heroism while the other just houses some food).