This is a short quest and involves finding Dandelion’s Lute that he left with a lovely lady, Rozalind, when her father found out about him. You can find Dandelion at the New Narakort Inn (#1) but he won’t tell you about his missing Lute until you beat him at a drinking game.
Dandelion’s Lute can be found in a Merchant’s House (#2) but you’ll have to get past the Rozalind’s father. You can either bribe or box him to get upstairs. Once there if you act sweet towards the girl she’ll sleep with you. Search the trunk in the upstairs room to find Dandelion’s Lute. Bring it back to Dandelion at the inn for 5,000 experience.
Now that Dandelion has his lute he’ll be playing concerts at the New Narakort Inn at night from around 18:00.