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Based on the information provided in the quotation, we can infer that the place referred to used to be a Danish outpost. To determine the location of this outpost, we can consider the historical context and the presence of Danish colonial influence in India.
During the colonial era, Denmark had a presence in India through its trading activities and establishment of colonies. The most notable Danish colony in India was Tranquebar, also known as Tharangambadi, which was located on the east coast of the Indian subcontinent in the present-day state of Tamil Nadu. Tranquebar was a Danish trading post and served as a major center for Danish commercial operations in the region.
Given the mention of "curious Danes" and a "Danish outpost" in the quotation, it is highly likely that the place being referred to is Tranquebar in Tamil Nadu, India. This quaint town features a fort and a beautiful church known as the New Jerusalem, which aligns with the description provided in the quotation.
Furthermore, Tranquebar is known for its historical significance, colonial architecture, and its association with Danish heritage. The town`s streets and beachfront have a serene and deserted atmosphere, adding to its quaint charm.
In conclusion, based on the information provided, the place referred to in the quotation lies on the Tamil Nadu coast, specifically the Danish outpost of Tranquebar.