On the second queststage you have to light a bonfire and spread some herbs.
Its not possible for me. Im playing mousemode and switching to keyboard didnt worked either. I could create a bonfire (even that with problems), but there is no way to interact with the herbs in my inventory on any mode.
Had to abandon this quest.
This quest worked for me, but not with my own bonfire. We were two players at the position, but I couldn’t do it on my own bonfire, no matter how I tried. The other player seemingly had no problems doing it on my bonfire, so I switched channels and waited for someone else to put down a bonfire and I could finish the quest. This was also the case when I had to burn some documents in a bonfire in another quest, only worked on another players bonfire. Maube you should try it that way 
What I did was:
Light up a bonfire
Switch to a different channel
Go back to the original channel
Walk towards my bonfire
Interact with it with the V key
Hope this helps!
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