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Freewalker,
Yes, it is as Lord Brass and Sazerac have said:
1.) Before the ice priestess will appear, you must first accept the quest from Kresselack. Make sure you follow the conversation through until he acknowledges that he understands that you have accepted his quest; and
2.) It is easiest to visit the Yeti cave FIRST, off the Yeti, loot the room, go to Kresselack to get the quest, and then return to face the ice priestess so that she is without the extra help that she would otherwise have.
Oh, and don't forget to go back for your reward!
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