these girls outside the mill at the start made me laugh!

Peggy is one of the two gossip girls located outside of the Rivertown Mill on the hill by the clothesline. You can mind read her for 33 exp.

She believes that

Upton caught Lieutenant Louis in the woods with no pants on,
The doctor in the inn can take out screws in his head and lift his skull,
Richard claims Folo is intimate with his pigs.