I'm guessing you have something that changes the interior layout of the Blue Palace and you haven't hit the trigger that's near the door. You'll need to use setstage to progress and get her to walk upstairs.
The way it should work is you enter the Blue Palace, hit the trigger just inside the door, she walks upstairs as you go and talk to Firebeard and then once you've completed The Man Who Cried Wolf, the quest will prompt you to look around for where she's at. It's just outside the door to Stentor's room.