Try highlighting the character with the quest. Open your use/give window (left side of screeen). Click on 'give', then scroll through your inventory using the arrows on the little give window until the potion bottle shows in the window. Keeping this window open, approach Mekdawa and click on him. When you hear him say "Toads need this!" you know you've successfully given it to him. If you have more than one with the potion quest, repeat steps after highlighting the subsequent character.
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