Cave is very unforgiving. Bring an enchanter/CC. Spent couple hours in here and never saw anything drop. Lot of squeeze and no juice for me out of here. Corpse recovery's usually end up needing second group for backup.
Hobgoblins have been changed as of last patch to no longer be group (chevron) mobs. They still have some nasty abilities - shaman caster, and pressure point armor come to mind, but they are definitely doable solo now.
Made using Schematic: Student's Shawl (found mine in a supply crate)
Requires:
1 x Novice Shawl Basis
1 x Improved Cloth Cord
1 x Celestium Dust of Acuity
He has a handful of quests after "Borrowed Weapons" as well. One where you have to kill Larcs the Weaponmaster to get a stolen schematic, and then one after that where you have to kill a Gadai Bandit with a Rusted Dagger equipped. That one appears to be the last one in his quest line (as of the time of this writing) unless there are faction requirements for further quests.