1. I suggest that you wait until you are ready to hit the gong and start blessing ritual. Go to the well, toss 1000 gold in it and wish for experience.
You will gain millions of XP points by doing so. If you use your wish early in the game, you will still gain a level but XP points you receive will be much less.
2. It is actually Imp's Deserted Castle in the SW part of Dark Forest. There is a stair (Just like the one which leads to Warrior's guild) in the southern part of the cliff. Look carefully or you can miss it.
