Taken straight from the Cleric Epic Wiki.
Take the crown to Shmendrik Lavawalker (3600, 0) who spawns once every 3 hours. Stay at his spawn spot because he is level 30 so someone might kill him if you're not there. When you trade him the crown he will give you Oil of Fennin Ro and Natasha Whitewater will spawn. Natasha will kill Shmendrik, causing a spirit of flame to immediately spawn on his corpse. Kill this level 40 spirit of flame who has approximately 3300 hitpoints.
Loot the Damaged Goblin Crown from him. Natasha will also try to kill her so just root, enstill, mesmerize, or do something that will keep her out of the fight because if she gets the killing blow it may cause the corpse to disappear.
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