Dragon's Dogma Walkthrough Part 16: Lost and Found

After killing the Hydra and leaving the encampment, you run into Elvar outside.

Elvar: That terrible creature - I saw it from my spot at the post... What was it? It's been dispatched then? Thank the maker. Er, hold a moment. Is Quina not with you? She was said to leave the village in search of aught for your wounds. I thought you accompanied her. These are dark times for a girl alone in the wilds. Any idea where she might be off to?

Go to the village (Cassardis) and talk to Chief Adaro, near the gate (he should have a green question mark on his head at this point)

Adaro: Hold, minnow. I'd have your ear a moment. It's been a full sun since last I saw Quina. She spoke of the Witchwood to find a cure for your wound. If she's gone there for true... I beg of you, find Quina and see her back safely, else some ill befalls her.

This starts the quest:

Lost and Found
Make for the Witchwood

Objective
News of Quina's sudden disappearance has left you shaken. Seek out the village chief to learn more of her whereabouts

Details
Word has it Quina trekked into the Witchwood. Begin your search there.

If you open your map, you will see that Witchwood is to the Southwest of Cassardis. To get to Witchwood, take the road from Cassardis to the Encampment. Then use a dirt path on the northwest and continue west. The road eventually turns south, leading you to Witchwood. You might encounter wolves, goblins, bandits, and other threats along the road, so be prepared to fight. You could also cut through the mountains and arrive at Witchwood a bit faster, but the way we described is the safest.

There is a brief cutscene as you enter. See the quest marker on the minimap, and head towards Quina who is standing pretty close to the entrance. She apologizes for making you search for her. But she had to come. A witch walks these woods, one who understands the language of the dragon. She asks you to accompany her in seeking the witch.

Your quest log updates:

Lost and Found
Seek out the Witch

Follow Quina on the road, eastwards. You soon come across a flight of stairs leading up to a wooden shack, the Witch's House. Enter it and talk to Selene. Selene tells you that her grandmother, the witch, is dead. Quina asks Selene if she knows of the Dragon, and whether she can read Wyrmspeak. Selene says that faith knows, it cloaks the dragon, cloaks the truth. Those who search for truth outside the faith are branded heretics. Quina is disappointed that Selene does not have any useful information, but thanks the girl anyway.

You now need to report back to the Village Chief. Travel back to Cassardis. You can go back the same route you came through, but there is also a shortcut from behind Selene's home to right outside of Cassardis. Talk to Adaro when you reach Cassardis. He thanks you, and you receive your reward of Rift Crystals, Experience, and Gold.

This completes the quest, Lost and Found.