I have made it to the front area outside the college but I need to cast a fireball spell on this eye thingy and as I am a powerful Mage every time I cast the spell the elf lady gets hurt or if I am successful doing this without hurting her nothing happens.
You need to cast the Firebolt spell, specifically, not just any fire spell. Otherwise, these are also possible spells to cast on the seal:
Or, cast Healing Hands on her. Your issue is most likely that you're casting Fireball instead of Firebolt, however.