Here is my translation

Alan

Hún brá við hart ok mælti: "Þú hleyptir inn sponsinu um augat, karlmaðr," kvað hún.
She reacted (shouted out? screamed?, cf begða e-u við, CV) severely and spoke: „You are-shoving the-bung in beyond (um, Z11) the-hole (opening, auga, Z2 seems more likely than eye, see below), man,“ declared she.

"Ek skal ná því ór aftr," segir hann, "eða hversu varð þér við?"
“I shall get that (ie the bung) back out-from (there) (ie I shall retrieve the bung),” he says, “so how was (it) for you

"Svá dátt sem ek hefði drukkit ferskan mjöð," kvað hún, "ok haf þú sem vakrast í auganu þvegilinn," sagði hún.
“As pleasing (dár, Z2) as (if) I had drunk fresh mead,” she declared, “and keep-you (haf, imperative) the-mop (https://en.wiktionary.org/wiki/þvegill ) as active-as-possible in the-hole (auga, Z2),” said she.

Hann sparir nú ekki af, þar til at hana velgdi alla, svá at henni lá við at klígja, ok bað hann þá at hætta. 
He spares now not from (it) (ie he does not hold back) until (it) warmed all (of) her (ie until she developed an all-over temperature, became feverish, cf velgja, noun, CV2), so that she was on the verge of (e-m liggja við e-u, Z8) becoming nauseous (lit: to feel-nausea), and (she) bade him then to leave-off.

Þau tóku nú hvíld, ok spyrr hún nú, hvat manna hann væri. 
They took now a rest, and she asks now, what kind of person (man) (lit: of persons) he was.

Hann sagði it sanna ok spyrr, hvárt hún væri nokkut í kærleikum við Eddu konungsdóttur. 
He said the true (answer) (ie the truth) and asks, whether she was somewhat on friendly-terms with Edda (the) king´s-daughter.

Hún sagðist oft koma í skemmu konungsdóttur ok vera þar vel tekin.
She said-of-herself to often come to (the) bower of (the) king´s-daughter and to be well received there.

"Ek mun hafa þik at trúnaðarmanni," sagði hann, "ok vil ek gefa þér til þrjár merkr silfrs, at þú komir konungsdóttur í skóginn til mín."
“I will have you for a confidant,” said he, “and I want to give you for (it) three marks of silver, that (ie in return for which) you bring (the) king´s-daughter into the-wood to me.”

Hann tók nú ór pungi sínum þrjár valhnetr. 
He took now out of his pouch three walnuts.

Þær váru sem á gull sæi. 
They were like (one) should-look on gold. (ie they had the appearance of gold)

Hann fekk henni þær ok bað hana segja konungsdóttur, at hún vissi einn þann lund í skóginum, at slíkar hnetr væri nógar.
He handed them to her and bade her to say to (the) king´s-daughter, that she knew that single grove in the-wood, that such nuts were abundant.

Hún sagði konungsdóttur eigi upporpna fyrir einum ok sagði henni fylgja at jafnaði gelding þann, "er Skálkr heitir ok er svá sterkr, at hann hefir tólf karla afl, hvat sem reyna þarf."
She said (the) king´s-daughter (to be) not at the mercy (upporpinn) of a single (person) and said (that) that eunuch usually (ie as a rule, at jafnaði) accompanied (lit: to accompany) her (dative), “who is-called Skálkr and (who) is so strong, that he has (the) strength of twelve men, whatsoever (it) was was-necessary to prove (ie no matter the difficulty of the situation).

Bósi kvaðst þat eigi hirða, ef ekki væri við fleirum at sjá.
Bósi declared-of-himself not to care-for that, if (one) were not to look at more (ie so long as he was not confronted by more men).

Um morguninn snemma fór hún at finna konungsdóttur ok sýnir henni gullhnetrnar ok sagðist vita, hvar slíkar mætti nógar finna.
The next morning, early, she journeyed to meet (the) king´s-daughter and shows her (the) golden-walnuts, and said-of-herself to know, where (one) might find abundant (ie in abundance) such

"Förum þangat sem fyrst," segir konungsdóttir, "ok þrællinn með okkr." 
“(Let us) journey thither as soon as possible (tout suite),” says (the) king´s-daughter, “and the-slave with us.”

Ok svá gera þau.
And they (with the slave) did so.

Þeir kompánar váru nú komnir í skóginn ok snúa til móts við þau. 
Those companions (ie Bósi and Herrauðr) were (had) now come into the-wood and turn to a meeting with them (ie the girls and the slave)

Bósi heilsar jungfrúnni ok spyrr, hví hún ferr svá einmana. 
Bósi greets the young-lady (ie the princess, king´s-daughter) and asks, why she journeys so solitary (ie with so little company)

Hún kvað eigi hættligt um þat.
She declared nothing risky about that.

"Þat er nú sem takast vill," segir Bósi, "ok ger nú hvárt er þú vilt, at fara með mér viljug eða geri ek skyndibrúðlaup til þín hér í skóginum."
“That is now as (I) want to happen,” says Bósi, “and do (imperative)  now which-of-the-two (options) that you want, (1) to go willing with me or (2) I perform a hasty-wedding to you here in the-wood.