I killed her by pushing twice, nothing to do with fixing the curse, when you loot her little alcove nothing there seems to help. Theres another quest with the girl who she has captured, but thats not a satisfying ending really. Not sure if its bugged or what, but so far theres no sign of a way to remove the curse. Aside from the XP which is 250, and the staff that Gale needs, I dont think there is anywhere near enough incentive to do the quest.

Perhaps its something that is removed when you get to Baldurs Gate, assuming you can get there later on, but for now its either bugged or just a cruel punishment I guess.