Note: During the quest Wayward Guide, Kane can be found by following the quest marker. He also appears right outside the Lair of the Forgotten after completion of A New Guide but before Getting Even. Kane will not appear if anyone in your party has completed this quest previously. Also, every party member must have the Wayward guide quest for him to spawn atop the hill.
"I can feel them watching me even now. Wherever I go, their beady eyes track my every move!"