The desire to not change Pal's memories, and the desire to put this woman in her place war behind her green eyes, but she smiles, no sign of the confusion showing on her face. This woman seems to be at odds with another, someone else powerful, someone else cursed. Someone who has the woman's ire. Palamedes seems to have a decent sense of self-preservation, as he doesn't move, but he doesn't press either of them.

"Surely a necromancer of your stature would recognize the very embodiment of Death."

She's really just guessing, but the thousands of years, paired with Palamedes telling her about his research into immortality, plus the fact that this woman seems to have two souls, well, it's probably a good guess.