Wasn't It Obvious?

Use the portal behind Joanna at Xylem's tower to find Anara the Spirit Healer and—hopefully--Azuregos.

Azuregos! Yes, of course. Troubled old dragon, but lovely heart. I don't think all the years of vagabonds assaulting him have done him much good. He's a mite strange these days.

Not long ago, when returning yet again to our local Spirit Healer, Anara, I couldn't help but notice that her and Azuregos seemed to be hitting it off. I imagine he's still keeping her company.

The portal behind me is probably the quickest way to reach her. It might sting a little though.

You will receive: (or at max level)

Azuregos! At last you've found him!