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You have to follow the Glacial Mage's instructions.
"If you convince the Froth Swamp Witch in the Great Froth Swamp to give you a Tree Swap Spell and a Soul Swap Spell, I might be able to combine them into a spell that would restore the tree. She's very secretive though. It might be hard to find her. You might need a revealing scroll. Take this one."
You have to free the Froth Swamp Witch from being encased in stone. After you do that she'll tell you,
"For the other spell, you'll have to find my evil twin in the Forest of Stones. She'll not part with her half easily.
Hey, one good prank deserves another. Take this Catalepsy potion and try to convince her to drink it. You can tell her it's chocolate liqueur. She loves chocolate liqueur. A little mind magic might help convince her to drink it.
Then, when she's under the spell of the potion, you can steal the Soul Swap Spell from her. The Catalepsy potion will paralyze her for awhile so she can't move. She deserves such a delicious little trick.."
You need Mind Magic at least 130.
Then when you have the two spells, give them to the Glacial Mage, she'll give you a new spell, stand in front of the tree and cast that new spell at it.