Found in the Candle Shop in Catherby, west of the bank.
Notes:
The candle-maker's main role is to sell candles at 3gp each, which can be used as a light source. However, the candle-maker is also involved in the Merlin's Crystal quest: making the black candle in exchange for a bucket of wax.
Interestingly, buying 4 candles from the Candle-maker at once will instead give the player the fork handle item. This is a reference to the popular "Two Ronnies" four candles British television sketch.