Investigating the Dreaming Palace

As we started healing up a group of more guards arrived to take the Mimic away and escort the guests we had found to safety. About an hour later Sgt. Ollo arrived as well. We requested that some guards be left by the stairs & outside while we continued investigating the rest of the Inn. Once this was set up Sgt. Ollo headed out and we headed upstairs. We soon found a large room with a Sarcophagus for a bed. We explored the room, not finding anything interesting. However, as we turned to leave the room the 2 statues sprang to life, moving to attack! Jensen identified the creatures as Animated Statues. We soon turned them to rubble. After a bit of healing we searched some more, finding a trapped room. We marked it and continued on. Next we found what we assumed was the owner's room. It had a ladder that led downward 20 feet into a stone area below. We figured this led to the basement. We left this for now and continued back past the stairs we started at to search the rest of this level. The next room we found had glowing runes and vines strung around it. A Giant Viper sprang from a basket in the room to attack! We handily defeated it, but when it died the floor suddenly dropped away beneath us! Below was a 40 feet deep spiked pit. Jensen managed to jump clear, but Kasper and Elisan plummeted into the pit. Jensen tied off a rope and climbed down while they worked at healing up. Searching about he found a shrine to Norgorber & a book seemingly written in blood. The book had names, many of which the group recognized as missing people. They took it with them for evidence.
Looking around we saw 2 sets of double doors and a single door out of the room. Elisan chose the set of double doors with undead ghostly twins (which Elisan identified as a creature called a Binumir) & Hendrid Pratchett behind them. Hendrid quickly went on the offensive and the Binumir screeched and made Jensen sad. The fight quickly devolved into the guards on the edge of losing their lives. Eventually the guards won, but Jensen, Elisan and Callum's bird, Felix. Kasper finished the fight with a final lucky bow shot to Hendricks. We tied him up tight, searched the room for evidence, rested up and then climbed back up the rope to safety with Hendrid in tow! We took him to be watched by the other guards on site. We then decided we should try to clear the final few rooms on the upper floor. We found a room with 2 people who had obviously been cut and beat up. When we entered the room they started to attack but Jensen was able to talk them down & convince them not to fight us. We took them down to the other guards. Returning upstairs we next found a room with a bloody Redcap. The fight started off well but we lost our momentum partway through and then quickly lost the fight. Only Callum was able to get away, bringing help from the other guards. 2 of them were killed but they managed to kill the Redcap. Callum got us all downstairs and took the wagon with Hendrid back to headquarters while the rest of us napped. He met Sgt. Ollo along the way back. He told Callum to take the prisoner back to headquarters and gather more guards. Hendrid was thrown into a cell & Callum returned with 8 more guards. When they returned Sgt. Ollo was also just getting there, along with 3 clerics he had gathered. They helped get everyone back on their feet. At this point we decided we had best rest and recuperate before continuing the next day. The guards set up a command center & we rested there to be available, in case we were needed.