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Location:
Fort Frostmoth, Carius' Chambers, 3rd floor of General Quarters
1. Captain Falx Carius notices disturbing trends at the fort. The soldiers' morale seems to be low lately and he wants you to find out why.
2. He asks you to speak with the guards, but you might notice after this that they won't speak with you and mention something about booze. If you already have some brandy or flin or other alcohol on your person, they'll smell it on you. So get some if you don't (see #4 for one location), and then speak with any of the guards again, about the subject "booze." They'll open up about the shortage at the fort.
3. After the conversation with a guard, head back to Carius and let him know. He'll give you another lead, Antonius Nuncius who's in the Imperial Cult.
4. Before you speak with him though, let's do a little investigative work so we have some evidence. Head to the Armory, across the courtyard from General Quarters, and up the stairs to Antonius' room. Pick open the lock on the desk and look inside. It's filled with booze.
5. Pay Antonius a visit, on the first floor of the Imperial Cult, to the left after you exit the General Quarters. Talk to him about the "dry fort" and his involvement.
6. When you find out what you need to know, report back to Carius who will give you three Cure Disease Potions (which you may need later) and a magic blade.
7. Speak with Carius again about the next subject that opens up, "fort business."