Rank 1 piercing gaze quest is by the sewage plant.
Rank 2 piercing gaze quest is from the lady in the basement of yaskers, elizabeth or w/e
For the rank 2 quest you have to kill magic elementals in bort, and fire elementals in victory park.
You also need to find 5 npcs:
-Oleg Truthin, old square, [NOTE the npc is called Oleg Pravdin]
-Oko the Righteous, in boiler camp, close to old square
-Pavel Broadcastinov, in bort, by the mail [NOTE the npc is called Pavel Bogdenov]
-Yasskul Isis, hadron quarter, in the area surrounded by pipes, under the xaes sign
-Roman Lubyankin, looking for him now