Book 7, Chapter 1: The Hill of Cerin Amroth  

'Have you visited the hill of Cerin Amroth, Name? You should do so, for it is lovely at all times of the year.

'Look for it in the centre of Lothlorien; it is both beautiful and peaceful, and Milwen will be pleased to tell you some of its history. Look for her by the archway west of the hill of Cerin Amroth.'

You have been acknowledged a friend of Lothlorien through your efforts on behalf of the Elves, and should travel to the Hill of Cerin Amroth to affirm that friendship.

Objective 1
Talk to Milwen
Milwen is by the archway west of the hill of Cerin Amroth, located in the centre of Lothlorien, far to the north-east of Talan Haldir and east of Echad Andestel.

If you have not already completed Volume II, Book 6, it is encouraged, though not required, that you do so before beginning this quest.