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2 of 8: It's in the end table that's next to the bed inside her shack.
3 of 8: Read the map, then look for the area that it depicts.
4 of 8: It's a long ways NW of Falkreath.
5 of 8: It's the Lost Valley Redoubt / Bard's Leap Summit area.
6 of 8: Since the chest is marked as being at the base of the falls, the best place to start from is Gloomreach. See the exploration guide's Markarth section.
7 of 8: Go east from the cavern entrance to reach the water, then turn right and go along it.
8 of 8: Look for the treasure chest in shallow water next to some tall rocks.