You might not be able to do this as evil, or you need to do another quest to start. I get this message when I try:
Brother Thomas tells you:
"I'm not in the habit of sharing information on my friends with strangers."
In Medienne go to the temple to the priest of Algesa, Brother Thomas.
'ask algesa jenda'
You ask Brother Thomas about Jenda and where she went.
You will start a secondary quest for the fae-forged parrying dagger.
The quest requires you to find Jenda who only appears once the quest is assigned in room 29845 near the elven fletcher in the SE side of the Vaasa.
Saying 'to jenda parent' will continue her questline as she send you to Narak to find Walthers, a thug who killed her parents. You must claim his head. Back to the bar you go!
'ask bar walthers' will give you some text that Walthers will find you. Waltchers will attempt to kill you after you leave the bar (just walk around Narak). Collect his head and give the head to Jenda in the Vaasa. She will reward you with a fae-forged parrying dagger.
The dagger itself is pretty nice. It is off-hand only, +1 int, +1 disarm, +1 parry, can automatically disarm foes with blades, 1d15+1, anti mage/cleric/paladin/druid/reaver, and level 45. You will also get 4 quest points.
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A Fae-Forged Parrying Dagger
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An Elegant Mithril Parrying Dagger
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Base Cost: 5000 Level: 45 Weight: 2.50 lbs
Damage: 1d15+1 Class: dagger Attack: pierce
Acid: 90% Fire: 99% Cold: 99%
Rarity: rare
Materials: mithril
Wear Loc.: left_hand
Layer: base
Anti-Flags: anti-mage, anti-cleric, anti-paladin, anti-druid
Restrictions: bladed
Affects:
Intelligence by +1.
Disarm by +1.
Parry by +1.
Is magical.
Is water-proof.
Is rust-proof.
Can automatically disarm foes with blades.
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