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What does the boggy witch do in the under the bog map? I thought she might be part of the lost now quest but all she tells me is she is making stew

If you have a Witch's Staff, for 700 gold, she'll make it better. : )

"I haven't done any spell-casting at all today. I'm primed to go. For 700 gold I'll enchant that Witch's Staff you have there with my 'Better Duplicate' spell. Then you'll have a Witch's staff and a Bewitched staff. Such a bargain."