You will find Battle Master Gambolt and Magician of the Northland Expedition in a house located in A snow covered village. Also in that house is the machine. Gambolt asks you to locate a domesticated kobold and bring him to the machine.
The Domesticated Kobold is right outside the house, so just walk outside and talk to him.
Return the Domesticate Kobold to Gambolt, and the kobold is willingly fed to the machine.
Magician of the Northland Expedition then tells you that he needs three intact kobold heads to power the machine.
You will find plenty of kobolds around the village. You have to kill some extras, to get the intact heads. Once you have collected the 3 heads, return to the magician.
Magician of the Northland Expedition puts the heads into the machine, there is bright light and a hologram appears. This quest is complete.
Hirelings and Escorts