You need a Spirit Blade to control your dangerous inner powers. Ask Skuld about the Spirit Blade designs and have Baoninerk craft the sword.
Step 1. Speak to MuninA prescient Daeva, now imprisoned in a crystal at the The Forsaken Hollow. He was exiled after some sort of accusations in Pandaemonium..
Step 2. Ask SkuldA mysterious girl standing on the coast near Anturoon Crossing in Ishalgen. for the Spirit Blade designs.
Step 3. Get Spirit Blade ComponentsRefers to Ancient Balaur Heart, Pure Drazma Crystal, and Blue Golem. and take them to BaoninerkA Shugo master Weaponsmith in Tigraki Island.. (You need to collect: Ancient Balaur Heart)
Step 4. Return to Munin.