Sorry for the late reply.
Some helpers are A and B.
a) Gragorim's words are:
"You will need to travel to the Scorched Sands, an arid desert south of Dawnhollow. It is a ten-day journey south from here."
b) Another helper is On April 8, where you see a map with the path to Dawnhollow. The path shows a direction that is south and slightly west. Following this path from Graycliff, you travel South, then West, then South. At the crossroads, you are told you were heading west before the crossroads. You haven't made it yet to Dawnhollow.
Dawnhollow is south.
Your presumption that "Dawnhollow is North (based on #4)" would mean that you passed Dawnhollow and would need to backtrack north to find it. You wouldn't have enough info for the puzzle, since you wouldn't know if Darkvayne were North or South.
One might presume that Dawnhollow is west, since you were travelling west before the crossroads. This would put tarroshade and Copperset North, and you wouldn't know if Darkvayne was East or West.