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The easiest way to farm Smoking Remains for the Canthan New Year is to follow the initial group of Mursaat at a distance, allowing them to circle north of the western lava pool. Once this group has gone back east over the north edge of the lava pool, head further west to a small clearing. Sometimes, a few of the Mursaat will head south of the lava pool toward you; in this case, it is best to run past them toward the clearing--they will only attack a few times as they continue to patrol eastward. Two Nightmares will spawn in the clearing; if solo farming the drop rate on smoking remains is not terribly uncommon.