Many lore-masters seek the Path of the Ancient Master, but not all can accomplish their goals alone.
'Hail, friend. I speak for my fellow lore-masters when I ask for your aid in no small task.
'Within the Forges of Khazad-dûm is a spectre of fire known as Ruingal. Apparently, he has caused no small amount of strife in the days since Durin's Bane first came to Moria.
'If you would aid one of my fellow lore-masters in felling this foul creature you would have our eternal gratitude and a small token of our appreciation.'
Ruingal can be found in the Forges of Khazad-dûm, south of the Cross-roads of Ash in the Flaming Deeps, east of the Water Works.
Hugi has asked you to aid a fellow lore-master against the fire-grim Ruingal, in order to fulfil the Path of the Ancient Master.
Hugi is at the camp-site outside the Forges of Khazad-dûm.
You should return to Hugi and inform him of your success.