So way before I got this quest, I went and raided the Verdistis police chief's office and stole all the goods from the treasure chests inside. Of course I sold it all. Hours later, I rescue Penumbra and she tells me her dagger is in there. Ooops. I don't see it in there anymore. I'm thinking I must have stolen it a long time ago (when I got the magic lockpick quest from the thieves guild guy downstairs). Is there any way to solve this quest now? If not, anyone know of a saved game editor so I can just give myself the item? =).