I don't like to get the magical book in Zelda because it causes a lot of accidental burns. (It makes the wand create fire when it hits something.) I have reached Level-9 in the second quest, though, and didn't see it, so I wondered where it was.
I don't want to spoiler myself, but I'm OK with looking at maps of dungeons I'm not going back to. Thanks to NESMaps, which I found via a
Set Side B post, I now know that it's in
Level-4.
That's a subtle cruelty in keeping with the nature of the second quest. You don't find the wand until you get to Level-8, which I have to say, is very hard to find. You need a certain item to get there, and even then, it's one of the ones that doesn't have any visual cues about where the entrance might be. The guy did a lot of overworld mapping for me, and by exhausting search, we found it.