Porcupine Mountains, Upper Peninsula, Michigan. Photo: Larry McKee, L McKee Photography. PLEASE NOTE: This image comes in sizes 8x24, 10x30, 12x36, 20x60. Lake of the Clouds is a lake located in Ontonagon County in the Upper Peninsula of the U.S. state of Michigan within Porcupine Mountains Wilderness State Park. The lake is situated in a valley between two ridges in the Porcupine Mountains. The Porcupine Mountains, or Porkies, are a group of small mountains spanning the northwestern Upper Peninsula of Michigan in Ontonagon and Gogebic counties, near the shore of Lake Superior.