You'll meet this peasant woman inside the inn in Murky Waters. When she sees you, she'll get right to the point: "I like what I see and want to get to know you." If you bring her a Sugardoll, then she'll sleep with you.

Note: You can get a Sugardoll from the baker in Murky Waters by trading him some White Honey for it. You can also find a Sugardoll in the blacksmith's house.