Partial refunds

A buyer recently purchased an item from me after asking for exact measurements.  I posted the item after she won the auction but she then contacted me to say it didn't fit her.   Even though I do not accept returns, I agreed to refund her the cost of the item less postage if she sent it back at her own expense.  I have received it back this mroning but cannot work out how to refund only the cost of the item (£8.00).  I do not expect to be responsible for the cost of the original postage of the item to her.  She did not start a return.  What do I do next?  I know how to do a refund on PayPal but don't want to refund her the total amount or incur selling fees. 

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