Right when you enter the area past the crest door, to the left of the stairs (assuming you're going down them), there's a ledge. It probably has a ton of messages written on it because it's where everyone does all their grinding.
If all you really want is the ring of fog (not sure where Shiva fits in, what do you need from him?), you can trade your skull lantern to Snuggly for one.
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Falcon Punch
http://www.youtube.com/watch?v=FFtw7qW7Vcw