First, go into the southeastern city quadrant. That's directly south of you. It's main drag is a circle, so proceed south then east, very quickly. As soon as you turn east, begin looking for a door to the north. It's the tavern; get inside.
One of the habituees will be happy to join your party. Don't leave him out: he's got excellent fighting skills, an enchanted weapon, and some good secondary magic skills, too. That should make things easier for you.
And in a battle, don't forget Morte's taunting skills. If you don't mind pausing the game a lot, you can effectively keep one or two enemies engaged in chasing Morte, while the rest of your group concentrate on everybody else.