A little update,
Started a new game and this time worked through it slowly - Success! I’ve encountered at least two Varanus whilst keeping my wealth buildup slow and steady.
It seems if you build up / place the tokens and work through the orc storyline too quickly the Varnanus stop spawning in place of other enemies. I still haven’t encountered a trader which sells their skins either. So when you start a new town hold off on making them rich as little hearthkings until Varanus spawn and you have two of the skins.
Wouldn’t the sole appearance of toe Varanus render the blue potion from the herbalist meaningless?
I’m still referring to the trader of town tier twwo with farming supply who comes regularly to my town.