lol
Let me spell it out again: How do I know to look in Cloisterwood, and not, say, in the Black Pits?
I was long done exploring Cloisterwood when I freed the Lich, so if there are zero clues about his location, i have no reason to look in Cloisterwood. In fact, in a few other quests where I liberated some NPC, they usually go back to Driftwood.
I don't know how much more to simplify this for you. If you don't get it, sorry. I just hope the devs get the issue.
This game is meant to be a little difficult
You confuse 'difficult' with poor writing. Not the same.