Both the Caverns of Frost and the monster Chiltara are rare spawns, making this a very time consuming item to find. The final item drops from a rare spawn monster named Chiltara in the Caverns of Frost level 2, which is found in the Fields of Slaughter in Act 3.

From there run to the right and follow the bottom edge of the map until you find a little path that leads to the cave. The quickest way to find the merchant and his cave is to start a new game with any quest in Act 2 past the 'Blood and Sand' and then take the waypoint, 'Path to the Oasis'. This is perhaps the hardest of all the items to get. Unfortunately even if the cave spawns in your game, there is a chance the Mysterious Chest will not. Once inside the cave you need to look for a Mysterious Chest that can only spawn on the first floor of the cave. After killing the ghosts and speaking to him, he will open the cave allowing you access.

The Liquid Rainbow is found in Act 2 in a Mysterious Cave that can only be opened by a rare spawn merchant, who you must save from ghosts. Wirt's Bell can be bought for the low price of 100,000 gold in Caldeum Bazaar in Act 2 from everyone's favorite vendor, Squirt the Peddler. If no logs are present, it's time to make a new game and try again. If the fireplace has burnt logs in it, simply click them and you will find the shinbone. Unlike the Black Mushroom, Leoric's Shinbone always spawns in the same room making it much easier to find. The fastest route to getting this item is by starting a new game on the quest 'The Imprisoned Angel' and then taking the waypoint to Leoric's Manor. This item is a random spawn in Leoric's Manor in Act 1.

Diablo 3 liquid rainbow