The source is the boxed RQII supplement Pavis: Threshold to Danger, and more specifically the Episodes book, from 1983. The Cradle Affair of which you ask is a really big scenario. The supplement is sadly, terribly out of print, so the scenario is generally unavailable.
I asked Rob Heinsoo at the German RQ Con if Chaosium were going to make the Cradle scenario available on their Glorantha web-pages. His answer was: "Possibly" (or words to that effect).
A very short synopsis: Gonn Orta, the Elder Giant of the Rockwoods, places his infant daughter in a giant Cradle stuffed with magical trinkets meant to educate the giant infant when she grows up in the Underworld (like the giants of old did before the greed of the God Learners made the giants stop doing it). The Cradle floats merrily down the Zola Fel until all sorts of people find out about it.
The Lunars want to possess the Cradle and a lot of other people (including Newtlings, Uz and orlanthi rebels like Argrath-i-mean-Garrath and, probably, the player characters) want to stop the Lunars from doing just that. The lunars attack the Cradle with just about everything they can muster, so it's no easy task defending the Cradle. The scenario is truly of epic proportions.
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