Once you enter the Asylum, there's a crazy guy to your left [of which, the 'voice in your head' will tell you "You don't want to look in there, seriously."] and a locked door adjacent to his cell.
Turn right, into the 'reception area'. To the right is a office with a note.
keep right and you'll enter a hallway with a bunch of tables. To the left is a room and a blocked passage with two pressure plates.
Turn back around, and head stright. in front of you is a crazy guy. mind read him, and he'll talk about pills falling from the ceiling. the camera will pan over the beams to the medicine room and to a switch behind a keg.
Examine the cells in this area and get a Note and Supply Room Key off a corpse in one of the cells. go all the way back to locked room near the entrance- you'll get jumped Jango, a bountyhead, when you go back to the reception area. go into the supply room, grab the key, and run back to the locked room to the left of the lunatic you just mindread.
grab as many of the potions as you want, then flip the switch behind the keg, by the door. a secret panel wil lift- revealing the Queens' Cup and a teleport pad [which will lead you to the rooms in Chanell's shop.]
once you have the Cup, ask the lunatic by the door to help you- by standing on one of the pressure plates, to open the rest of the asylum. go down this path, to the left is Najeed and a room of dead goblins and a necromancer with a Broken Crystal Skull, and a Note. the Note will give you the password to the teleport at the end of the hall on the right [again, to Chanell's shop].
**Take the Queens' Cup to the Gulas' dig site and grab a beer. take the beer to the Ogre-fied goblin to finish this quest.**