You'll find her in the Yetis cave, it's the cave south of the statue situated close to the middle of the map. Her religion has her going about extinguishing fires and such, when I recieved the quest I wasn't sure if there had been lit torches outside the Yeti cave originally, but there wasn't after I got the quest. It looked suspicious enough to check out. You'll find her in the cave just to the right hand side of the crates.
Hint: Talk to the barkeep in Kuldahar afterward. Not the Inn that offers only rooms.
As before perhaps if you didn't accept the quest or talk to Arundel she may not appear.
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