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Baldur's Gate Hints
The Boss: Mulahey
1 of 5: Mulahey is not what you would call bad news. He is a coward and relies on his minions for help when the going gets tough. Any time you show him mercy, he will call for more minions and attack anew.
2 of 5: He is also a dark priest and casts Hold Person often, so have magic missiles or a lot of bow and arrows ready to interrupt his spellcasting.
3 of 5: To provide the best defense, have one fighter stand in the entrance to the minion chamber (the northwest chamber) and fight the minions (kobolds and skeletons) while everyone else focuses on Mulahey.
4 of 5: After he is dead, check the chest at (635,872) and remove the letters inside to trigger the start of Chapter 3. Time to leave -- congratulations.
5 of 5: Now return to Nashkel and talk to the mayor.