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At the top of the mountain is the real city where the royals live. There is a lot of loot and there are a lot of Diamond-Armored Walkers. There is also a secret room not mentioned in the mysterious books. It is fairly easy to get lost in here, and a large number of walkers spawn (10-15).
One floor underneath the market/farm room you will find a room surrounded by bookshelves and a table. If you mine the bookshelves behind the table you will find a room with 2 double chests. If you mine on the opposite side through more bookshelves you will find another hallway, if you follow t
To the left of the skull in the lower village is a building with a mineshaft. Follow the minecart rail and go through the maze. At the end of the maze is a large room with Shelob, a giant spider. The Shelob drops its signature Spiderhook. The is also the Walker King that can be found in the Upper Keep guarding his chambers.