ahhh, ok, so the issue is you're in the correct area, but wrong puppy suit. The puppy suit for the quest is on a crate & dog-shaped mannequin across from the ball gag in the basement. Pick it up & return to Talle with it to proceed to the next part of the quest. This part has arrows that you can follow to find her. The hardest part is the blindfold part at the end.