Plot

Coraline, a slightly deranged kid who is obsessed with Loli Ruris have been observing them on the Valley of Gyoll for quite a while now. She looks for people who are as obsessed with Loli Ruris as her and offers to make them a doll on the head... for a price.

Instructions

Warp to Niflheim.
Head to the Valley of Gyoll by exiting Niflheim through the western portal.
Search for Coraline (Located at 356, 210).
Choose the option: "OMG. LET'S BUILD AN ALTAR FOR THEM!", then choose "Yes", and she will tell you to find someone.
Go to the far south-west corner of the map and talk to Deev (Located at 67, 63). Tell him Coraline sent you. He will say he needs more time. Talk to him again and he'll tell you to collect 10 Nuts.
Return to Coraline and ask her what she wants. She'll tell you the nuts are actually Nutshells. After obtaining the nutshells, return to Deev and he asks you to tell Coraline he forgives her.
Return to Coraline and she will now tell you the items to make the headgear. Bring her the required items to create a Drooping Loli.