Path through labyrinth. Up down left right. Smugglers mask is in 3rd section. You will need dynamite.
Proof is in the rooms to the side of malicus (take your pick 2 different ones or get both) you will need keys or pics.
The windmill. get to the end of the labyrinth, hit the switch in the building with the slaves. talk to the slaves and slavers. (make sure you've picked up the smuggler's mask first). you will have access to the wind mill. leave abandoned village, go to whispering woods, talk to smuggler by the elven town. return to windmill and kick it in over drive.
the other elder in the elf village tells you about the power generator but not until after you've proven malicus' guilt. he also shuts it off for you.
you can buy dynamite and gem bags from the dude on top of the cliff in the mountains (just before the area where you get the flowers).