Strange Figure is an NPC in a tunnel under a trap door in Erdal. After some dialogue, he will ask you to decipher: "A.... S... N............. O.." which translates to "Apple Salt Nightmareberry Oil."
Combine the ingredients and bring them to him. He thanks you, says a mage named Lee cursed him and took his wife, and now he can have his revenge. He teleports away without giving any XP.