Khalim's Heart - This can be found in the sewers under the Kurast Bazaar. The Bazaar is next to lower Kurast, which can be found past the Flayer Jungle. There are two entrances to the sewers in the Bazaar and an exit inside the sewer to Upper Kurast, if you want to leave that way.
Khalim's Flail - You'll get this by killing the main council member. If you kill the rest of them, you'll solve Quest
7. The council is found in Travincal that can be reached via the Kurast Causeway in Upper Kurast. Upper Kurast is reached by going through the Kurast Bazaar. Travincal is a death zone. It's the toughest thing you'll have reached so far by an order of magnitude. Be prepared.