Acquire 10 kunzite clusters. It does not matter where or how you acquire them (despite the specific wording of the quest journal). (Note: Can be found in and around the cave at ( -77, -29, -96 ) Copy/waypoint -77, -29, -96)
Scribe the recipe (Level 9) and craft the phylactery at a Work Bench (there is one at 671, 38, -134, Jinisk). You will need:
1 Toris spectre essence
10 rough kunzite
2 Deklium Bangles - level 78 Jeweler-made (Note the Deklium Bangles also require 2 rough kunzite each bringing your total of required rough kunzite to 14.)
DO NOT COMMISSION THE CRAFTING: the false phylactery can be commissioned, but doing so will not update the quest and you will not be able to hand it in, while consuming your spectre essence in the process and thus leaving you stuck