The bartender was right; the two are impossible to miss. They're practicing sword work in the yard of the flour mill during their break when Cain comes around the corner. One small female Red Goblin and one Dwarf-sized leatherback Turtle Kin. Both are wearing plain gray tunics with brown leather pants and boots to train in, and the red skinned Goblin has her black hair pulled back in a single braid to keep it from getting in the way.
They're both level 44, so they must have kept working hard after they stopped getting experience training on dummies. Low-level green Goblin attacks were common before Cain arrived, so they've likely also had at least some actual combat experience.