Caly is a multi-headed dragon of notable power. She first came to the town of Mistmarsh roughly 100 years ago offering to aid Lord Cadmus Zelkan in his efforts to produce an heir. Of course, when she came to Mistmarsh she had disguised herself. She appeared as an elderly female gypsy, claiming to have the secret to what ailed the Lord and his wife.
Her efforts proved successful in producing an heir, but the result was not what Lord Zelkan had hoped for. In exchange for helping the Lady Zelkan conceive, Caly had cursed the town, making it such that nobody die after the heir was born. Additionally, Lord Zelkan was transformed into a cambion and found that he was unable to control his devilish half once night fell on the town. Worse yet, the residents of the town soon found that they could not leave the town to escape their fate.
The party came to the town in search of a void crystal to help power the time machine, and also hoped to recover a piece of shadow glass that the sage Carlyse was searching for. The party soon discovered the curse and became cursed themselves. As they sought a cure for the curse, the party soon encountered Caly. At first she appeared as an old crone but once the fighting began, she reverted to her true form: a three headed dragon. Each head was a different color (black, green and blue respectively). The fight would prove deadly to the party but they were able to bloody the dragon before being defeated by her. When she was bloodied; however, a fourth head emerged from her body. Caly reveled in the defeat of the adventurers and took flight, only somewhat disappointed by the disruption of her ritual that was draining the souls of several servants of the Raven Queen. Before the fight was over though, the party did learn that Caly is at the very least aligned with Orcus and that she appears to be helping him in his fight against the Raven Queen.