Just like gold and item drops, dungeons drop potions.
Over the course of a dungeon level, you can get quite a few potion drops. The drops are random among members of your group. Group members probably have to be within the xp/treasure range of whatever is dropping the potion(s), either the monsters you kill or chests. Once someone has 25 of either hp potions or mana potions, that person won't drop anymore of that particular potion.
SO TO FARM POTIONS:
Empty your inventory of potions or carry much fewer than 25 of each.
Go farm in an area you can survive fairly easily in.
Put on m/s gear for less mana usage.
When you get 25 potions, give to a designate person in your group OR stash them.
Repeat.
Farm away!
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