A shop owner and alchemist, Falanu Hlaalu can be found in the Tamriel province Cyrodiil in the town of Skingrad. There she maintains the shop All Things Alchemical in an apparent exile from Morrowind.
Falunu Hlaalu is one of the more unique characters you come across in Oblivion as she casually mentions her interest in necrophilia.
"I'm the only alchemist in Skingrad. Not much business here, but I can't go back to Morrowind. It's just like anywhere else in the Empire. By the way... do you happen to know what the fine is here in Cyrodiil for necrophilia?
- Seeking Your Roots: "After discovering a peculiar plant called Nirnroot, you decide to investigate it further."
- Sanguine: "Crash a dinner party at Castle Leyawiinand play a prank for Sanguine."