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"Naive girl
Go up to the 3rd level of the lake cave. Go through the top northern exit.
Head through the grass passageway to the mountain top scene. Make sure you have Xaolan with you. She doesn't need to be your active human pet. Head to the berry bushes. She loves the scenery.
Xaolan's friendly rating increases by 3 points"

Lake Cave a.k.a. Kama Cave in North island.