Instructions
Talk to King Bumi in the royal palace. He will instruct you to retrieve the mollifying paste for him.
Leave the palace, and following the green line on your screen to go to the city circle.
Go into the central market in the city circle and head south. Find a group of stray cats around a haystack. Go up the stairs to the left of the haystack.
Walk to the left until you reach the South Market. Find the Royal Merchant and talk to him. At first he may refuse your business, until he learns King Bumi sent you.
Purchase the mollifying paste from the Royal Merchant and return to the palace, defeating any Fire Nation enemies along the way, and give the paste to King Bumi.