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[Orange Wizard]

Oh yeah, they live in caves (usually) close to towns/villages, and will periodically go out patrolling (so you might run into one while travelling, or find and empty lair). You get quests to kill them every so often. Sometimes they aren't hostile and you chat with them, as said by... I'm not even going to bother typing that.
Older worlds might have all the night trolls extinct, which might be why you've never encountered them. They were always pretty common when I've played adventure mode, so I'm not sure what's going on there.