The deceased is, of course, Superior Sister Frigid. She is buried in the grave.
This is the low-spoiler guide for "Something from the body of the deceased" puzzle in Leisure Suit Larry - Wet Dreams Dry Twice. Unlike in normal walkthrough, you get gradual hints on how to solve the puzzle. Click the big button below to see your first hint. If the hint contains a spoiler, you will be warned about it before clicking.