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This is part of a series of quests.

Location NPC Rewards
Western Passage Lim 1) 2 restoration potions, 2 copper coins, 1 silver coin.

2) [Random]: steel shield, speed resin

Talk to Lim (north of the Little Rooster Inn at the Western Passage) who will ask for an unknown favor. Accept and he will give you 2 restoration potions, 2 copper coins, and one 1 silver coin.

Go to the Subterranean Dwarves zone, located somewhere in the Smothering Caves (the exact floor is always random). There is a hidden area behind a destructible wooden wall to the south-west of the zone, which you can reveal by throwing an explosive potion at it. Lim is hiding here and when talked to will ask you to kill Posh. Posh is an ugly dwarf located in the center of the Subterranean Dwarves zone. You must first recruit in order to lure him out of the Subterranean Dwarves zone (you can do this without doing Lim's quest as well).

Talk to Posh, who will ask you to dip your face in acid. There are various acid potions to be found in this zone. First, drop all your gear on the floor, otherwise your gear will become corroded and requires repairs. Next, use an acid potion and target a floor tile. Make sure to target a tile near a Kvas barrel, which can remove the acid effects. Stand in the Acid and wait ('tab') until the acid debuff is applied. Drink from the Kvas barrel to remove it. Talk to Posh again who will be surprised you actually went through with it.

Posh will now show you a hidden altar in the Subterranean Dwarves zone which you otherwise cannot access. Talk to the spirit residing in the altar. This spirit can absolve you of all your sins provided you spend some XP doing so. Do not end the conversation, but also do not select the option to be absolved (since it will cost XP!). Any other option ends the conversation naturally. Afterwards you can talk to Posh, who will now offer to be your companion on your travels.

There are three ways to proceed now:

  1. Keep Posh as a companion. He will follow you around and attack enemies for you. This can be dangerous, though, because if he dies the enemy that killed him will become stronger.
  2. Sell Posh to the slavers in the Wood Cabin. This can only be done if you have completed The Test and revealed who the slavers really are.
  3. Lure him out of the Subterranean Dwarves and use the 'u' hotkey to treacherously attack him. Kill Posh to complete this quest.

Once Posh has died he will drop his ugly head. Bring it back to Lim who will give you a reward for it (usually a steel shield and a speed resin).