Would keep reading.
Very well done prose and well written. It's the kind of work that you'd have to judge more on the professional side more so than a site like this. In that regard, I still think the writing is highly competent. You've got some fantasy stuff naturally layered in. None of it was jarring, which was nice, but I can't say I loved any of what we saw. I don't have a sense for the world or how much of anything works.
Past all that, on the story telling and characters. I think you nailed the village group quite well with a lot of different voices.
The story was a little thin. I get what you're doing, Name of the Wind, story within a story deal, and that's cool, but the set up was almost lacking (once again, judging it on that higher level). Like, I have a list of questions. What is a paladin? What does he do? Why does the village need him to do it? And then, if this is all your entire set up for the real story, there almost needs to be hinging more on it. We have the town meeting, they consider throwing her out, but then everything past that is unrelated. So effectually, she's just telling a story for the story's sake. It isn't tied directly to winning their approval, or quelling an angry mob.
And then on one final note, what I believe was a mistake. You mention early that town gossip said she could be a necromancer, but it was completely unsubstantiated. But towards the end, you just up and call her a necromancer with the narrative voice. I can't imagine you meant to convey information that way.