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This particular Daedric quest requires you to be at least level 8 to begin it. Once you meet that requirement, pay a visit to the Shrine of Sanguine located to the northwest of Skingrad in The Imperial Reserve region. Speak with Engorm when you arrive and tell him that you've come to revel in the glory that is Sanguine. He will tell you that some Cyrodilic Brandy
would be an appropriate gift for the Daedric god. If you don't have any, fast-travel to the Imperial City Market district and purchase a bottle at The Main Ingredient. Once you have the brandy in your possession, approach the altar and offer it to Sanguine.
Sanguine sounds disappointed that another mortal is here to beg him to add spice to an "otherwise drag existence." However, he still asks you to perform a service. The Countess of Leyawiin is too stuffy for the Daedric god's tastes and will be hosting another one of her "excrutiating dinner parties." Sanguine wants you to liven up the party, and even teaches you a spell called Stark Reality
that will apparently do just that. You're to cast the spell on the Countess and her guests and Sanguine promises that it will make the party much more interesting. You must remain inconspicuous, though, or they might kill you for being there. The party is invitation-only, too, so you'll also have to find a way in before you can do anything.
Fast-travel to Castle Leyawiin and enter its County Hall. Wait around until 5:00 - 6:00pm, then move into the main throne room and hang a right. The dinner party is just behind the door in front of you. When you approach the door, the guard tells you that you don't look like one of the party guests and that your name is not on the list. Inquire about the dinner party, and the guard might simply let you go in. It all depends on what you're wearing. The more upscale your clothing or armor is, the more likely the guard is to let you in without a fuss. Even if you're wearing something the guard doesn't like, hand him a couple of bribes until his Disposition increases to 70+ and he'll let you go in anyway.
Once inside, find a good place to fire the spell so that it will affect the whole table, making sure you have plenty of clearance to run out of the castle once it's done (all the guards become hostile immediately). Cast the spell and watch the guests immediately lose all of their clothing (aside from their underwear, of course). If you don't get a popup journal message that you've completed the quest, cast the spell again until you do. You don't want to tangle with any of the guards after this is done, because you will have lost all of your clothing as well. Your best bet is to just run out of the castle, then exit the city and fast-travel back to the Shrine of Sanguine.
Sanguine deems your performance a "rousing success" and is happy to see that you joined in the festivities as well. He'll tell you that all of your equipment is in the nearby chest, and then will present you with the Sanguine Rose
staff as a reward for your efforts. "Maybe we'll celebrate again sometime," he quips.