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The Elder Scrolls V: Skyrim Hints
Speak to Ysolda about Sleeping Tree Sap.
1 of 7: Go to Sleeping Tree Camp and look a ways west of its bonfire for a cave entrance.
2 of 7: Enter the cave, then look near the giant to find a dead orc.
3 of 7: You need to loot that orc to get a bottle of Sleeping Tree sap and a message from Ysolda. Either sneak over there so the giant doesn't see you, or sprint over there and then sprint out of the cave after looting the body. (Note that if you loot the chest that's near the dead orc, you'll get two more bottles of Sleeping Tree sap.)
4 of 7: Read Ysolda's message in the "books" section of your inventory to get this objective, then go check out the special tree that's in the camp's small pond.
5 of 7: You can use the spigot that's on one side of the tree to get another bottle of Sleeping Tree sap. After you do, go to Whiterun and follow the quest arrow to Ysolda.
6 of 7: Tell her about finding the note on Ulag's body, then tell her you have some Sleeping Tree sap to sell. She'll pay you 150 gold per bottle, which is a lot more than you could get for it from regular merchants.
7 of 7: Note that you can return to Sleeping Tree Camp every now and then and use the tree's spigot to get another bottle of sap. However, it can be a long time before it's ready to give more sap.