Bolwing will ask the Arch-Mage to fetch a rare version of the ingredient Mort Flesh from a cave called Meutaniil. Bolwing will send the Arch-Mage out again after retrieving this item and the following items. The next items are, Dried Spider Silk from Nirn Scar Hollow, Ground Blood Moss from Mandas, a Black Pearl from Mana Grove and a Finely Crafted Elven Bowl from Red Beggar's Hole. (Note:There is no way of advancing through this section faster as the items only appear when Bolwing gives their location)
After the Arch-Mage has acquired all of these items the King of Cloudrest will be restored. He will offer to sell one of his houses to the Arch-Mage for $50,000 gold.
Bolwing will ask the Arch-Mage at this point to investigate the recently closed section of the mages guild, the advanced studies wing. After descending through the wing, than caverns the Arch-Mage will find a journal left by Ryndyll Roo in a black room. The journal is cryptic and explains that the only escape from the room is through teleportation (fast travel).
Bolwing will send the player off now while he studies the journal. Completing Quilinda's quest Supreme Hustle will advance this stage in Bolwing's dialogue.