thedarkbeginnings answered your ask “Thank you for offering to help with Russian folklore. I am taking you up on it! Is there any sort of male equivalent to Baba Yaga?”
Okay, Koschei is perfect. I was looking for something a little different, but in reading your description, my idea for that part of the story morphed into something significantly better. Baba Yaga can sometimes be helpful, but from what you've described, Koschei the Deathless is not? If so, I think that's what I couldn't get right with Baba Yaga and I need to let this character be what it is: a villain.
The needle within a duck, withing a hare, etc. conjured up a really good plot point that will work into the primary mystery of act one in which the idea of a mystery within a mystery will work wonderfully. Thank you for the link to the illustration (which is HERE). Physically, he fits this part of the story. I need someone who can appear to be a vaguely crazy old person.
You mentioned that his name is derived from the root word for "bone." Is that strictly because of his emaciated appearance? Would it be too far out of character for him to use bones in various ways? I'm picturing a road paved with bones leading to a house made of skulls. Last question: how violent is he? The illustration shows him charging with a sword, so is he likely to attack once the hero comes to rescue the captive or would he wait for the hero to attack?
After proofreading the above, I'm wondering if it's weird that I'm spending more time developing villains that will be vanquished within a chapter or two rather than further developing my heroes...