Kailor's Cap is an item in Tales from the Tiers.
The Sage Kailor's warm optimism earned him many friends within the stacks of the Vellum Citadel, but it also doomed him. One of the chief voices opposed to accepting Kyros' rule, Kailor believed the knowledge hoarded by the School of Ink and Quill too great a treasure for the Overlord to risk by issuing an Edict against the great library.
Though Kailor has not been seen since the destruction of the Citadel, his favorite hat, knit by his own hands, found its way into your possession.
Random encounter around the Burning Library after lifting the Edict of Fire - you have to help the woman.