The Caves of the Daemons are a series of caverns in a mountain, near the Laughing Valley.
The first cave belongs to the Daemon of Selfishness. After that is the cave of the Daemon of Envy, then the caves of the Daemon of Hatred and the Daemon of Malice. From the last of these four caves is a tunnel leading to the cave of the Daemon of Repentance. ("A Kidnapped Santa Claus")