Four villages, three black smiths and desert temples!

The First Two Villages

From spawn turn to your left and you will immediately see the first village. Head over there and you can see the seceond village almost joined to the first. Thsi second village has a blacksmith.

The Third Village

From the roof of the blacksmith at the second village, you can just see the third village in te distance. This village is a water front village. This has a blacksmith.

The Fourth Village

From the first village, follow the road that leads into the desert as shown on the screen shot. Just continue straight and just over the next hill is the fourth village, a desert village. This has a black smith.

Temple

There are a few desert temples about but this one seems particularily profitable. From the third village (the waterfront one), look left to see the start of a desert biome. Follow the border of this biome around on the left adn eventually you will reach a desert temple. The loot will vary but this temple seems to yeild really good loot. On my first run through I got 7 diamonds from this one temple. On my second I got three diamonds and two sets of diamond horse armor.