King Kobold
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Book Two in the Warlock of Gramarye series by Christopher Stasheff, published in 1971, revised as King Kobold Revived (1984).
From the Publisher:
"Gramarye is a forgotten colony of Earth, an abandoned planet of telepathic outlaws, where elves and witches are real, and the fantasies of the Middle Ages endure. Warlock Rod Gallowglass is the only one who can save Gramarye from doom -- if he can rid himself of the insidious mental fog that drains his powers."

