Before Kass began his revenge invasion of Meridell, he needed King Skarl to somehow be distracted from leading his troops. Thus, came about the Court Dancer who Kass sent as a gift to King Skarl.
Her true identity is the daughter of Morguss the hag, but this was unknown to the Meridellians as she entranced them with her bewitching dance. All fell to her spell except for one, Lisha. Lisha was then able to reveal the Court Dancer's true form, just in time for King Skarl to command his troops before Kass's attacks.
The appearance she wears as her public face is an illusion. Her real form looks more like this:
As you wish, my king.
Oh, hello. You must be part of the Meridell embassy sent to make the new treaty arrangements. Why don't you take a little break and play this enchanting new game? I think you'll find it quite captivating.