From Intense Ragnarok Online Wiki
1. Speak with the Old Legend Teller (malaya 128, 332). He tells you that the old lady has come back to life as Bakonawa and will soon be taking vengeance to the village.
2. Ask him about calming down Bakonawa. After his explanation, offer him for help. He tells you that there is a Slate Piece he left but it is small, damaaged and hard to identify. He tells you that his granddaughter holds the piece. Meet his granddaughter near the harbor.
4. Give the slate piece to the Old Legend Teller and he wants you to track down a wandering merchant. Having absolutely no idea where to start and being trembled of the spirits that haunts the forest, he asks you to visit an immigrant that lives at the north-western part of the forest to gather information about the wandering merchant.
6. Ask him to tell the story. He tells you that the wooden doll is supposed to chase evil spirits away and according to rumors, the wandering merchant moved to Baryo Mahiwaga.
8. Walk near the stone and a message will pop-out. You find the that damage is severe making the record unidentifiable. You also find out that when you insert the slate piece into a hole, it seems like it's a puzzle. Though the message on the stone is not very clear, you attempt to read it.
9. After what you've read from the stone. You decide to tell it to the Old Legend Teller.
10. Return to the Old Legend Teller and tell him what you read. He asks you if you can defeat Bakonawa. Accept his request and he rewards you with 3 Ancient Grudge as a sign of gratitude. He also tells the Village Chief to grant you access to the lake where Bakonawa lives.