We present adaptive optics assisted spectroscopy of three quasars obtained with NACO at VLT. The high angular resolution achieved with the adaptive optics (~0.08), joined to the diagnostic power of near-IR spectroscopy, allow us to investigate the properties of the innermost 100 pc of these quasars. In the quasar with the best adaptive optics correction, PG1126-041, we spatially resolve the Pa-alpha emission within the nuclear 100 pc. The comparison with higher excitation lines suggests that the narrow Pa-alpha emission is due to nuclear star formation. The inferred intensity of the nuclear star formation (13 M(sun)/yr) may account for most of the far-IR luminosity observed in this quasar.