Stony Creek Cave

The cave is located southeast of Windhelm, north from Riften, just north of Ansilvund with the entrance at waterlevel.

Overview
Entering in a pool of water with a few skeletons, walk up the woodpath and pass the breton lying over a pole. Follow the water stream forward and a two bandits will appear. On the right hand side further up is a path leading to an Alchemy Lab with a random mage. The lab lies on the left side of the path and can be easy to miss. Watch out for the bandit guarding the sidepath.

Continuing forward on the main path and eventually it leads to a large cave with a waterfall and a bandit mining the moonstone ore veins. A chest can be found beside him.

There is a wavering distortion in the air, similar to heat distortion around a fire. This indicates the presence of flammable gas, which can be ignited with a flame spell or shout but not a torch. This will have about the same damage as oil on the ground however, it will be in the air and less avoidable. It can be also noted that simply holding a fire spell (not charging or firing/fired) will ignite the gas, so caution is needed.

Entrance to Kagrenzel
When checking the map it reveals the path continues further beyond the waterfall. By climbing the rocks opposite the opening and then using the Whirlwind Sprint shout, it's possible to reach the top of the waterfall. At the end of the corridor there is a passage to Kagrenzel.
 * It is also possible to climb the rocks under the waterfall but it's a lot more difficult.
 * It is also possible to climb the waterfall using Beast Form (only available for werewolves) and climbing the rocks on the left side of the waterfall. This can be done by jumping on top of the chest and then jumping to the side of the rocks.

In the tunnel leading to Kagrenzel, there is a Falmer Chest on the left sid. Climb the wall on the right side and find a Centurion Dynamo Core at the top of the small waterfall. Turn around and find a Flawless Diamond on top of the stone arc, which can be obtained either by shooting it down with an arrow, using the Telekinesis spell, or by jumping and quickly grabbing it while still in the air.

The tunnel eventually leads to a large cave with a bridge over the waters where the Dragonborn will safely fall into, from entering Kagrenzel from the main entrance.

Notable Loot

 * Moonstone Ore Vein 2
 * Finn's Lute
 * Stone of Barenziah
 * Mystery of Talara, Book IV
 * Treasure Map X
 * Shahvee's Amulet (Random 1 out of 4 caves)

Related quests

 * Bounty
 * No Stone Unturned
 * Kill an ex-crew member of Kjar in the quest Harsh Master
 * Miscellaneous quest to return Queen Freydis's Sword to Oengul War-Anvil
 * Find Finn's Lute
 * Potential location for the miscellaneous quest to return Roggi's Ancestral Shield to Roggi Knot-Beard in Kynesgrove.
 * Potential location for a miscellaneous quest to defeat a bandit leader for Brunwulf Free-Winter
 * Possible location for Meridia's Beacon
 * Possible location for the companions miscellaneous quest "Family Heirloom"
 * Find Shahvee's Amulet (Argonian Marriage option)
 * Possible location for quest Ancient Technology. (DawnGuard Expansion)
 * Possible Location for The Forgemaster's Fingers (miscellaneous quest) required to become Orc blood-kin (if not already and orc by race selection)
 * Possible location for schematics in Ancient Technology