This is not a walkthrough, so I won't be adding every detail to this dungeon. Only what I know. You are more than welcome to add to this, and if you'd like it in the first post, I'll definitely give you credit. Also, if there is any incorrect information, please do not hesitate to correct me.
This dungeon costs 10 Platinum to unlock and consists of 3 stages.
1st: Winter Village
2nd: Father Frost's Factory
3rd: Jolly Old Father Frost
This is where everyone is getting all those Winter Festival Items like Jolly Holiday Hack(sword) and Snowman Helmet(Vanity)
The one thing you should know, if you did not is that the difficulty of monsters depend on the highest leveled member of the party. So if someone is level 50 in your party, you can bet that the monsters will be near impossible to defeat for someone else in your party who is level 15.
The other major aspect your should keep in mind is that the items that come from monsters, or otherwise known as drops, will indeed also be affected by the highest leveled member of the party. If you receive a drop while someone in your party is level 50, and you are level 30, you will receive a level 50 item.
Keep this in mind most importantly when you face Toy Man in Stage 2: Father Frost's Factory. Toy man's difficulty and level of his drops will be affected by highest leveled member of your party. So it's best and recommended to put together a party with people nearly the same level as you or lower.
Defeating Toy Man provides you with rare drops 100% of the time. However, the level of the rare can range from Rare(Green), Epic(purple), or Legendary(pink).
To defeat Toy Man with the most ease, I recommend the following basic pointers:
1. Have at least one enchantress in your party, with maxed heal and revive skills. Enchantresses are vital in fighting him.
2. Toy Man has the something similar to the Stomp skill warriors have. He will use it roughly every other minute and it will knock you back a good distance, and can stun you, leaving you immobile temporarily.
3. To counteract the problem listed in 2, you can stand in the upper right hand corner of the room, or everyone can, and keep attacking him. This way, when you are knocked back, you can still deal basic attack damage to him while stunned as he will still be within distance. This is also easy reaching distance for reviving.
After defeating Toy Man, everyone in your party will be rewarded with a random rare item. If you want to progress, defeat and remaining evil snowmen.
In stage 3, here is where you can start doing quests for an armor. It may not have the best defense, but it raises your other stats by a fair amount.
Father Frost's quest which requires you to collect 250 coal hearts from snowmen is when earlier mentioned tips will come into play. When you finish his quest, you receive the Snowman Helmet. Fanceh! :P
That's about it for now... my thumbs hurt as I've been writing this from my Droid phone.
Things You Should Know:
Winter Festival requires 10 Platinum to unlock
Any kills in these stages do NOT give you experience points
You can replay and face Toy Man as many times as you wish.
ADVICE FROM EXPERIENCED USERS
Thanks and good luck!