First things first, i wouldn't ever delete anything you get, just try and do the quest over if you think something is botched up.
I believe what your supposed to do is return the medicine bag and the sheild to grekal and it gives some text saying he dumps the rest of the poultice on the sheild and rubs it in and he hands you back the sheild, now with stats.
He does give you the bandages back for some reason (useless now) and if you hail him again to restart the first quest he will give you another bag. So make sure you didn't actually hand in your sheild and have your correct reward and the extra swamp mud poultice and a un-used bag from re-hailing him.