Laufey is a giant, probably a 'true giant', from Jotunheim. She is about 18' tall, and seems to have tremendous melee combat powers, including a dodge ability that makes her extremely difficult to hit.
She was rescued, sort of accidentally, by the party when they found her trapped in a magical construct in a cave on the island of Calendriahn. She was determined to be Loki's mother, and had been imprisoned along with the Book of the Wolf Age in order to keep her from telling secrets and prophecies about the gods (specifically the Norse gods).