During a recent game, PW hit her ball into the creek bank on #7 and it was embedded.  Definition of embedded:  When a player's ball is in its own pitch-mark made as a result of the player's previous stroke and when part of the ball is below the level of the ground.  

Relief for an embedded ball is not available when your ball is embedded in a penalty area – seeRule 16.3 and Rule 17.3. If you do not want to play the ball as it lies, you can take penalty relief using the options in Rule 17.1d.

Relief for an embedded ball is only available when a player's ball is embedded in the general area.

Definition of general area:  The area of the course that covers all of the course EXCEPT for (1) the teeing area the player must play from in starting the hole she is playing (2) all penalty areas (3) all bunkers and (4) the putting green of the hole the player is playing.

PW was in the penalty area, so she would not get relief from the embedded ball.  She took a mighty swing before anyone could intervene and the ball remained in place.  So unfortunately, she would have to count that stroke, take a penalty stroke and play at the point of entry to the penalty area (previously known as water hazard).