You start off at #1 on the Gref's Rest map. Kern is at #4. Benevolent, Clever and Cruel options become available when you first speak to him, and an Aggressive reply becomes available shortly thereafter.
The short of it is that he was in a land dispute with a neighbor in the Whitestone Hollow named Haddi. He hired a Paladin named Cevistus with the intention of 'putting a scare into Haddi.' Only, Kern didn't realize until it was too late (after the contract) that Cevestin is a Bleak Walker, and that means that Cevestin is likely to murder Haddi. Kern would like you to stop Cevestin. Benevolent and Cruel options are available. There are also dialogue options based on being a Bleak Walker or a Goldpact Knight, but don't otherwise interfere with your acceptance of the task.
Here you will find Kosta and Bys at #30 on the Whitestone Hollow map. If you speak to them, they will indicate that some 'suspicious' people came by the nearby house.
The entrance to Haddi's house is at #32. Haddi is of course dead. You can use your Watcher abilities to follow his last moments, which will confirm that he and his wife were indeed murdered by Cevestin. You will also learn that Cevestin is now planning to also murder Haddi's son, Eska, in Dyrwood Village.
The entrance to the mill is at #9 on the Dyrford Village map. Once inside, you'll find Cevestin and his crew about to murder Eska.
It is apparently possible for a Bleak Walker to persuade Cevestin's own party to turn on him for you, although I do not know what checks may be required afterwards. I will update this point in the future when I've had a chance to play a Bleak Walker myself.
The simpler approach is to slaughter Cevestin and his whole crew. The loot includes:
Eska will reward you with 2,000cp if you had wiped out not just Cevestin, but also his entire crew as well. Wiping out the whole crew will also result in a moderate gain of positive reputation with Stalwart Village.
Reporting back to Kern will result in a 3,000cp reward, however you resolved the situation.
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The entrance to the mill is at #9 on the Dyrford Village map. Once inside, you'll find Cevestin and his crew about to murder Eska.
