Frost Dragon Quest/Spoiler

===Method===
Note: You must have completed the Barbarian Test Quest before starting this quest.
Travel to Okolnir, using the boat south of Svargrond (Buddel) (hi, passage, okolnir). Make sure you answer no to his first question if you are carrying a Dwarven Ring.
(WARNING: You might end up on the wrong island. If you do, keep asking to travel to Okolnir until you end up at the place depicted in the screenshot.)
Walk up the ramp, and you'll encounter one to three Frost Dragons.
Green dots are possible Frost Dragons and purple dots are possible Frost Dragon Hatchlings. Now follow the red arrow to the next hole.
Once again, green dots are possible Frost Dragons, and purple dots are possible Frost Dragon Hatchlings. As soon you step down, you will notice a hole. You might encounter one Frost Dragon Hatchling and possibly a lured Frost Dragon.
Black dots are possible Frost Dragons and purple dots are possible Frost Dragon Hatchlings. The blue dot is the quest box.
Now you have reached the hardest part. When you go down the hole, you will encounter at least one Frost Dragon, probably with at least one Frost Dragon Hatchling and maybe another one to two Frost Dragons. As soon as you have killed them, walk west as shown in the picture and go down the hole. Once down, walk west to find the rope-spot and a frost dragon. Kill it and go up.
Beware: this last room will have five Frost Dragons in it and at least 4 of them will target you as soon as you go up. Lower level mages should use Mana Shield. Energy Wall and Energy Bomb Runes can be used to prevent too many from dealing melee damage to you. Pick up your reward in the chest north-west.