To begin the miniquest, speak to Moswen who can be found on Mehden Island.
In order to get to the miniquest prompt dialog you need to exhaust all of his starting dialog, leave and then when speaking to him again you'll have the option 'Can you teach me to fish?' which begins the miniquest.
Pick up the fishing rod found resting against some boxes directly southeast of Moswen.
Follow Moswen to the docks.
Once stood next to the water, either hold down tab then select the fishing icon in the radial menu or press 'j' (the default fishing keybind).
Once you get a bite, you need to tap 'e' to keep the bar within the box in the middle. If the timer ends while the bar is in that section then you'll successfully catch a fish. Miniquest completed!
Moswen (Quest Start)
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Moswen has offered to teach me to fish, and surprisingly with no strings attached. He's offered me his pole to use.
Moswen has asked me to catch a fish while he watches.