Your fiefdom: update

Castle Granis
Skardash has used some of the money from tribute to complete basic improvements on the castle. The stone perimiter wall is complete, and stands on an embankment immediately inside a perimiter trench. The entrance is a gap in the wall with a wooden gate and a simple plank bridge across the trench. The interior of the castle has basic furnishings, and Skardash has installed wooden doors with simple locks.

Castle Granis standing army
Answering Grim's call, orcs and goblins from across the fiefdom have been coming to Castle Granis to be trained as the standing army. Twenty orcs and forty goblins have arrived, swelling the castle's standing army. Thanks to the training, the orcs and goblins are 2nd-level warriors. The standing army now comprises:

60 goblins (2nd-level warriors) armed with morningstars. 20 are also armed with light crossbows.
2 goblin worg-riders.
20 orcs (2nd-level warriors) armed with falchions.
5 ogres armed with greatclubs.

A few of the new recruits have brought families with them, swelling the castle's non-combatant population to 90 (80 goblins and 10 orcs). The larger population, and the fact that most of the males spend their time in military training, mean that Granis village is no longer producing enough food to support itself but is reliant on food given as tribute by the rest of the region.

Alignment
Sir Ivan's use of detect evil on a random sampling of the population indicates that roughly two-thirds of Grim's subjects register faintly as evil. (This is typical for a Droaam monster population.) Orcs and ogres are slightly more likely to be evil than goblins, and males than females. Among the population of Castle Granis itself, which Grim has directly influenced with his policies, evil is slightly less prevalent.

As a comparison, among human populations, even in communities dominated by the Silver Flame, around a fifth to a third of the population registers as evil. The Church does not teach that creatures of evil alignment should automatically be persecuted.

Religion
Religion plays only a minor role in the lives of most people of the region. Those inhabitants that are religious dedicate themselves to one or both of two gods: the Shadow and the Mockery. Although these gods are both evil, worshippers of the gods are as likely to be in the non-evil minority as other people in the region.

The Mockery is the Neutral Evil god of treachery over honour, and is worshipped primarily by the orcs and the more militaristic goblin warriors. Valdash, Kardash and Skardash all worship the Mockery.

The Shadow is the Chaotic Evil god of dak magic, and is worshipped mainly by goblin non-combatants. Village healers tend to invoke the Shadow if they pray to any god. Zurga still wears a small holy symbol of the Shadow, although it has become more a good luck charm to her than a symbol of religious devotion.

The Church of the Silver Flame teaches that both the Mockery and the Shadow are evil gods and their worship should be opposed. Individual worshippers should be converted rather than killed if possible, but priests of the Shadow and the Mockery are enemies of goodness and should be destroyed.

Terrain and wildlife
The region consists of rocky hills with very little plant life apart from scrubby grass. Various monsters have their lairs in caves throughout the landscape, sometimes preying on the inhabitants' flocks of goats but generally leaving the humanoids themselves alone. Monstrous inhabitants include chimeras, griffins, worgs, and behirs.

Borders
Your fiefdom is bordered:
On the north by the Byeskh mountains, which separate Droaam from the forested nation of the Eldeen Reaches.
On the west by the civilized nation of Breland.
On the east by the territory of another Droaam warlord, about whom you know nothing except that she is a medusa, and that her seat of power is the castle of Grimstone Keep.
On the south by the territory of the city of Graywall, one of Droaam's two major cities.

Timeline update

I've totally lost track of how much time has passed in the D&D world, and keeping track is going to be important if you're in charge of a kingdom. So here we go:

Sypheros 20	The Battle of Stoneskull. Grim's army defeats Jalahand and Grim becomes warlord of the region. Burr is killed by a trap.
Sypheros 21	The party receives a letter saying that the Daughters of Sora Kell endorse Grim's rulership of the region. Grim and Zumm embark on a tour of the region, while Verschoyle and Zurga begin creating a flesh golem. During his tour, Grim spreads word of his new policies: taxes are reduced, but are to be delivered rather than collected, and anyone who wants to can go to Castle Granis to be tranied into Grim's army. Some chieftains object to this, thinking Grim was trying to steal away their best warriors, but Grim tells them where they can stick this objection. During the tour Grim also meets Hurgadar, a mongrelfolk barbarian, who agrees to accompany Grim in search of adventure.
Aryth [November] 20	Grim finishes his tour and arrives back at Stoneskull to pick up Verschoyle, who has finished his flesh golem.
Aryth 21	Grim, Zumm, Verschoyle and Zurga arrive back at Castle Granis. Some goblins attempt to assassinate Grim using warforged bane arrows. The plot turns out to be the work of a group of Tsochar, who were inhabiting the bodies of the cleric Merred Nastor and his goblin disciples.
Aryth 27	The party tracks the tsochar down in the tomb of Dragith Nurn, which the dreaded E.K. was using as a lair. They kill E.K. and encounter a group of bearded devils in the caves below, who are guarding a strange crystal set into the wall.
Vult [December] 7	The party is recruited into the Droaam army, a short stint of service to prove their loyalty to the Daughters of Sora Kell. They are also introduced to Paik, a changeling bard who is to travel with them.
Vult 14	The party march south from Graywall with the rest of the Daughers' army, under the command of Horde Commander Koll.
Zarantyr [January] 5	The first skirmish of the war. Grim and the rest of the party lead their goblin soldiers to defeat an enemy battle sorceror and destroy a siege engine. They then kill an enemy spy who was hiding in a nearby village. That evening, they repel an undead attack on the army, which is by this time besieging the enemy city. Horde Commander Koll presents Grim, Zumm, Verschoyle and Hurgadar with military decoration to recognize this.
Zarantyr 6	The party infiltrates the Temple of the Cleansing Blade and assassinates the enemy high priest. Victory swiftly follows for Horde Commander Koll's army.
Zarantyr 7	Grim, Verschoyle, Hurgadar, Zurga and Primrose explore the lower levels of the Temple of the Cleansing Blade.
Zarantyr 28	The party arrive back at Graywall with their army.
Olarune [February] 2	While the goblin army makes its own way back to Castle Granis, Verschoyle and the rest of the party attend a gathering of the Society of the Shadow Art, a regional wizards' circle. Verschoyle is accepted for membership. The party also meets Mavik Hilford, another wizard and new member of the Society. Verschoyle asks Vurdak 'Deathlord', a foul flesh-warper belonging to the Society, to upgrade Primrose with a magic longsword.
Olarune 9	End of the Society gathering. Mavik entreats the party's help to rescue his familiar from the clutches of Zilkloog the Mind Flayer. The party teleports back to Castle Granis and then goes to Zilkloog's village in the battle wagon
Olarune 17	First assult on Zilkloog's temple. The party defeat the guards but then the party breaks up when it transpires that Mavik had been asked to bring Zilkloog food in exchange for the return of his familiar. Grim and Hurgadar return to Castle Granis via battle-wagon. Verschoyle and Zurga teleport to Graywall to stay at Tharrad Katarn's house. Mavik, Zumm and Paik go their separate ways.
Therendor [March] 9	Vurdak 'Deathlord' visits Tharrad Katarn's house and brings with him the upgraded Primrose.
Therendor 15	Sir Ivan, Exorcist of the Silver Flame, and Horgar Horgar, bugbear fighter, arrive in Graywall looking for clues about the whereabouts of Zilkloog, whom they have been ordered to slay. After a brief stand-off with Tharrad Katarn they team up with Verschoyle.
Therendor 22	Ivan, Horgar, Verschoyle, Zurga and Primrose arrive at Castle Granis, where Grim agrees to help them slay Zilkloog.
Therendor 23	Verschoyle, Ivan, Horgar and Grim teleport to the Val'druusk Observatory in order to learn more about Zilkloog's lair by scrying on him. They learn that he has replaced his temple guards with gnoll mercenaries. The party also find Zumm, who appears to be in some form of suspended animation, next to the scrying orb at the observatory. They then checked on the tribe of grimlocks which they had nearly wiped out and were now protecting. The grimlocks said that they did not have a viable population, and would appreciate news of another grimlock tribe they could unite with. The party teleport back to Castle Granis and the leave on battle wagon for Zilkloog's temple.
Therendor 30	Ivan, Horgar, Verschoyle, Grim, Hurgadar and Primrose arrive at Zilkloog's temple. They defeat the mind flayer (who turns out to be a tiny runt mind flayer, the giant mind flayer having been an illusion), and Ivan burns its head in front of the village.
Eyre [April] 7	The party arrive back at Castle Granis.
Dravago [May] 1	(The next meeting of the Society of the Shadow Art is sheduled for this date.)

Phew! All those times I've said "A few weeks later..." really do add up!

Death of Zilkloog

Grim, Verschoyle, Sir Ivan, and Horgar Horgar travelled by battle-wagon to Zilkloog's village, along with Hurgadar and Primrose. They found that the entrance to the temple was under guard by gnoll mercenaries. The party fought their way in and survived a gnoll ambush in the main hall of the temple. They also encountered and summarily killed the young goblin priest.

The party then barged into Zilkloog's chamber and engaged the mind flayer. The nine-foot tall mind flayer they had seen on their previous visit turned out to be an illusion, as did the wall behind it. Behind the wall was hiding the real Zilkloog, a small creature that appeared to be a goblin-mind flayer hybrid. Hardly anyone failed their will saves and Verschoyle stopped Zilkloog teleporting away, so finishing him off did not take long.

On the way out, the chieftain of the village foolishly attacked the party, and they made short work of him. Sir Ivan held aloft the head of Zilkloog. The goblin population shut themselves in their huts, terrified.

Sir Ivan burnt Zilkloog's head and felt confident that his mission was complete. He now feels compelled to go to the Tomb of Dragith Nurn and put the spirit of the slain cleric Merred Nastor to rest. Grim, meanwhile, is plotting how he can extend his territory to encompass this new village.

Of course, the party carted away all the loot they could find in Zilkloog's lair, up to and possibly including the furniture (I can't remember whether you decided you were actually taking that). Notable items were a +1 longbow, a +1 buckler and a mithral breastplate (from the gnoll mercenary captain); and a ring of mind shielding and headband of intellect +1 from Zilkloog.

Rules clarification: Grim is not immune to illusions
There was some confusion about exactly what Grim, as a 4th-level Warforged Juggernaut, is immune to, and specifically whether he was immune to Zilkloog's illusion spell. At the time I gave the benefit of the doubt to the players, but I have just read the rules again and I'm pretty sure I was right first time. Grim is not immune to illusion spells such as Zilkloog's persistent image, or his shadow evocation.

Grim is immune to "all mind-affecting spells and abilities (charms, compulsions, phantasms, patterns, and morale effects". This doesn't give him a blanket immunity to spells of the Illusion and Enchantment schools, though, because not all of them are mind-effecting in the sense required. Specifically, persistent image and related spells are Illusion (figment) effects, which aren't on the list of things Grim is immune to. Terms in D&D are well-defined: a 'mind-affecting spell' is a spell with the [mind-affecting] descriptor, and nothing else.

This does make sense if you think of the image spells as creating a kind of hologram or light-sculpture, rather than reaching into the subjects' minds and causing them to hallucinate. Grim sees the illusion because it is in some sense actually there, even though it's not a physical object. Similarly, if Verschoyle is inside his globe of invulnerability he will still be able to see a silent image spell that is conjured outside his globe.

(Another problematic thing is what exactly it would mean to say that a character is 'immune to illusions'. Does it mean he simply doesn't see the illusion, or that he immediately recognizes it as an illusion, or that he recognizes it as an illusion only when he would have to make a saving throw against it? All three would lead to very different outcomes.)

Grim was still immune to most of Zilkloog's spells; he didn't have to make a save against the confusion spell, for example, and Zilkloog knew better than to target him with a phantasmal killer.

I know I seem a bit anal pointing all this out but I think Grim's immunities really would break the game if we allowed them to be more far-reaching than they actually are. The fewer effective options the bad guys have, the less interesting the game will get for everyone.

A final note Grim may wish to bear in mind for his future plans: Grim is also not immune to a medusa's petrifying gaze attack.

XP before I forget

I always calculate XP but then forget to bring in the sheet with it on or forget to give it out. So I'm going to start posting it on here.

First assault on the Temple of Zilkloog: Grim and Verschoyle get 1188 XP each.
Spirit naga encountered in the Val'druusk observatory: all PCs get 375 XP.
Second assault on the Temple of Zilkloog: All PCs get 2325 XP.
Ad hoc XP I promised Imre for doing 'the voice': 200 XP.

So at the start of the next session you will gain the following XP:
Grim and Verschoyle: 3888
Sir Ivan: 2525
Horgar Horgar: 2325

That is a bit less than I had expected you to get, but I did get it from the online XP calculator that I always use.

New party formed

Sir Ivan, an Exorcist of the Silver Flame from Breland or Thrane, received orders from his superiors that took him to Graywall. The retired cleric Ellemar had received a vision of a giant mind flayer setting himself up as a god of Graywall. Sir Ivan's superior, the Archbishop of Wroat, decided that this would be a Bad Thing, and sent Sir Ivan to deal with the problem. Travelling with him was Horgar Horgar, a bugbear fighter employed by the church.

Ellemar had said that she believed a wizard was living in Graywall who had encountered this particular mind flayer. Sir Ivan and Horgar found the house of Tharrad Katarn and after a tense stand-off decided not to kill him for being part devil when he introduced them to Verschoyle. Horgar enjoyed Tharrad Katarn's wine and appeared to be warming to him, but Sir Ivan did not let his guard down.

Verschoyle agreed to help defeat the mind flayer, and suggested that they go to Castle Granis and recruit the help of Grim as well. Verschoyle, Horgar, Sir Ivan, Zurga and Primrose the Flesh Golem all travelled on horseback to Castle Granis.

Sir Ivan has received a very cool reception throughout Droaam due to his insistence of wearing the symbols of the hated Church of the Silver Flame. However, his charisma has managed to convince some of the goblins of Castle Granis that the Church may not be all that bad. Zurga, in particular, now has a much more open mind regarding religion.

Rather than travelling to the Temple of Zilkloog straight away, the party decided to go to the Val'druusk observatory in order to scry on their enemy first. There they found Zumm next to the scrying orb, apparently in some kind of suspended animation. The party defeated a random spirit naga that had made its lair in the observatory, and scried on Zilkloog's temple. They found it to be inhabited by a band of gnolls: ten in total, including the captain. There was also a young goblin who seemed to be training and Zilkloog's new priest. Verschoyle scried on every temple room that he had seen previously, but did not see Zilkloog himself.

At the end of the session, Verschoyle teleported the party to a safe area near the Temple of Zilkloog where they can rest. Because of the limits to his teleportation, he has brought only himself, Grim, Horgar and Sir Ivan. Hurgadar, Zurga and Primrose are all still at Castle Granis.