Lazlo works the forge in his father Anze's shop, Anze's Anvil, located in the Lower Ward.
Conversation
Lazlo has plenty of information to share about the marketplace and the Lower Ward, as well as the Lady of Pain. If The Nameless One asks Lazlo about the Lady of Pain, he'll recover a memory that awards 500 XP (unknown if this requires minimum stats).
If TNO talks to Lazlo about how the Lower Ward got its name, Lazlo will reveal that he saw the abishai Grosuk coming out of a portal by the Siege Tower. Lazlo thinks Grosuk was looking for a key to enter the siege tower, prompting TNO to deduce that the key to the portal is thinking about not wanting to enter the tower.