She asks you to find and interrogate a runaway goblin.
The goblin's name is Grix and is found between Chomper's Pond and Bogbottom Mill near Runnyeye in the vicinity of ( -118, 0, -545 ) Copy/waypoint -118, 0, -545.
Go to Runnyeye and kill Blikritz Bauble-eye near the dining room at ( 153, -16, -117 ) Copy/waypoint 153, -16, -117.
Boil the blood in the kitchen's furnace and smear it on the staff.
One of the furnaces right outside the Dining Room is now clickable and can be used ( 96, -16, -110 ) Copy/waypoint 96, -16, -110.
Find a clickable piece of junk in the room at the north end of the hallway very near the scarecrow, at ( 85, -16, -232 ) Copy/waypoint 85, -16, -232.
Notes
Although the quest was changed with the LU61 reitemization to reward an armor piece rather than a weapon, the flavor text of the quest was not updated and still talks about finding a weapon. The quest was later updated to readd the weapon as a reward in addition to the armor piece.