Fire spells & keeping out of their breathing distance has always been a good way to take out the lillies. If you can get right up in their face, they don't breath & usually miss when trying to bite.
I got into the gauntlet without ever having to have to talk to Vargul about it. (Go away you dumb dumb Tinker!) LOL
There is a room with a long walkway down the center & small ramps going down to floor level...Look for a door to the right as you enter & have at it! : ) (There are 2 rooms like this, one does lead to the gauntlet)
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