Not sure if you're talking about the cloak of reflection or the cloak of mirroring, they get mixed up a lot. The reflection cloak reflects electricity, the mirroring cloak reflects anything. The former is in the place Zenith said; the latter is in the Sahauguin (uh, forget how to spell that) city. Go to the place with the big face and step on the circle, and a bunch of Sahauguin will appear and attack you. One of them has the cloak of mirroring.
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