Italy of our world circa 1000 AD. This provides a suggestion of how the current Italian kingdoms may be organised south of the bounds of Europa Wulfenbach.
Milan is a large city in the Italies - Lombardy, to be specific. It started as the Celtic settlement of Mediolanum, "in the midst of the plain", founded by the Insubres. The city served as a transportation hub, and from the surrounding fields and forests, it produced a wealth of grain, livestock and wine.
After the Romans took possession, Mediolanum became known for its schools and imperial buildings; it became the seat of a prefecture and eventually the Western Roman Empire. After Christianity became the dominant religion, Mediolanum spawned an important heresy.
Subsequently, the city was conquered (at least in our world) by various flavors of Goths, the Huns, the Longobards then the Franks. The Latin name of the city became worn down to "Milan" from frequent use. Various other empires took the city over due to its strategic location and productive lands, depending on who held the strongest hand at the time. Whether the Heterodynes ever penetrated that far south is a matter of sheer speculation at this point.
From the only map provided so far from the Guild of Shipwrights, Aeronauts and Cartographers, the southern side of the Alps down to the Po River is under the rule of Baron Klaus Wulfenbach, including the majority or all of Lombardy of the period; on the map provided to the right, Milan is roughly located near the "o" in the word "Kingdom" in Lombardy, and is included within Wulfenbach borders.
Milan is the source of the coffee engine modified by Agatha.[1]
Possibly relevant outside information
A Google terrain map centered on Milan.