[At least he's relieved that she's alright like this. But being stuck in a lake is no way to be!

He sits near her along the lake's edge.]

Well, it does remind me of this one ballet... Swan Lake. I haven't seen a performance in years, though, so I don't remember the details. But it sounds like you're on the right track. With fairy tales like this, the way to break curses usually have to do with some kind of romance thing. Most commonly, a kiss.