I got the quest to find out from three people for Spymaster....he specifically told me not to talk to anyone in Hall of J and W, but for some reason I thought it would be ok to talk to that lady toddling around OUTSIDE near the temple (everytime I use my DI spell, she's right there), was I dreaming? Cause like, she told me where to find her and I found her and then read my quest book where he says DO NOT talk to anyone....I reported back to him and he doesn't seem pissed, but I wonder if I set myself up for later troubles.....I don't wanna get her into trouble...

don't worry anything about milo, you will get her into trouble but you can save her. it's part of the main quest.