The Food Stand Worker works for the carnival on Monster Carnival Island. She turns into a grease monster at night.
At daytime, the start of the island, the Food Stand Worker tells you that she's out of sugar to make fried dough, so she gives you a Sugar Formula. Go back to main street then to the Apothecary, where you talk to Dr. Dan and make the salt and sugar in the machine. After that, go back right to the Fried Dough Stand Worker and she will give you Fried Dough to un-hypnotize Edgar later in the island.