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You shouldn't encounter the priestess at all. She'll be in her hut and if you disturb her you lose the quest. Just go in, slaughter the Daedra(One named Golden Saint, two Hungers, a Flame Atronach, a Storm Atronach and possibly one or two other Daedra.). I recommend trapping the named Golden Saint if you can, they're one of the few souls that you can make constant enchantments on armor with.
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