where is the magic hammer, tearically near the vicinity of glatburg, but i cant find it

Spoiler

The hammer is hidden beneath some stones in the center of the devils cavern map. If you dont have this location marked on your map yet, you will eventually get it by proceding throughout act 2. Try heading south from the caves' entrance to find the boulders hidding the hammer.

This question has already been answered before btw. Try using the serach function for more information.