This guy seems to only spawn on the west side. I camped the east side for a week (because it has that 'safe spot' in the corner and only ever saw Greta.
I switched to the 'crazed candy hoarder's on the west side and got him after 2 cycles.
Note: For all map points of nameds in Morell's Castle (for "morellcastle.txt" map files), see this quest entry.
This is a halfling known to spawn from PHs "a crazed candy hoarder" on the west side of the candy land area. He hits for a max ~14,000.