The Cake

 is a item with no known use other than as a Trophy. To obtain The Cake, players must continually speak to the Royal Resident in the Barracks of Heroes in the Dwarven Mines for around 20 minutes.

Trivia

 * The name and description is a reference to the phrase "The cake is a lie" from the Portal series.
 * The sale price of this item is "1337". This number is a reference to "leetspeak", where numbers and symbols are substituted into words to make them look like letters.