Dwarves

The dwarves of Midgard live in three great realms: the Northern clan halls such as Tanserhall and Wolfheim, the free cantons of the Ironcrags, and the southern realms of Nuria Natal and Sebbek Sobor. The dwarves of the three realms are distinct in their culture, strengths, and style.
The Northlands dwarves are keepers of the old ways and the old gods, smiths and warriors, farmers and traders, stout and strong and able to down a barrel of ale at one sitting. They keep busy fighting the giants or the werewolves and worgs in the North, but sometimes the Northern dwarves take to the sea in their longships and raid the coasts, from Vidim through the Donnermark and Krakovar to northern Dornig territories, but bypassing the Magocracy of Allain. The Northern dwarves are especially accomplished at ring-making, smithwork, and (for some reason) berserk shapeshifting, including a society of especially fearsome bear-shirted berserks.
The cantonal dwarves are makers, miners, and smiths, digging deep into the Ironcrags for iron and gold and forging items of great wonder; primarily exceptional spears, crossbows, and arrows, but also great artistic works. Singular items are a lifetime’s masterwork: a clockwork steed or wagon, an airship, a returning hammer, or a suit of invulnerable armor. None of these are beyond the grasp of a cantonal smith. The cantonal dwarves serve no kings, choosing instead to rule themselves. They frequently serve as mercenaries in the Seven Cities, among the nobles of the Grand Duchy, and against the Mharoti Empire, side by side with the Magdar knights. They have a deep hatred of the undead of the Blood Kingdom.
The Southlands dwarves are distant relatives at best, with different language, magic, and style. In the desert heat the Southern dwarves shave their heads and wrap their beards tightly in gold or copper wire; sometimes these beards are forked or braided as well. They serve a male mask of Rava named Ptah, and they build clockwork bodies they call shabti, or servants. Their skin is dark as ebony, and—when not shorn—their hair runs to pure black, gold, or (strangely) red. The Southern dwarves are alchemists and mystics, with a particular hatred of dragons and the Mharoti Empire. They have served the god-kings of Nuria Natal well and faithfully as bodyguards and heavy infantry for centuries, and as engineers who build their temples, city walls, and step pyramids.
Dwarves and Men
The tale of men and dwarves is punctuated by feuds and battles, but they are allies more often than not. At first the dwarves mistook humans for a degenerate subrace of elf, and later grouped them among the many “lesser races” of Midgard. Gifts, familiarity, and common ground eventually forged an alliance between the two races, a concord that grew stronger as the old gods gave way to the new, but it was hardly an equal partnership. The dwarves raided into human lands at the least provocation, and their kingdoms claimed huge tracks of land occupied by other races, which the dwarves either drove out or enslaved. Those who proved too troublesome were exterminated.
In the Northlands, dwarven rule required those who submitted to supply tribute in the form of gold and slaves. The human tributes worked hard labor in mines or on lowland farms. These client races first gave their masters the nickname “reaver dwarf.” As time passed and more dwarves were lost each generation to southern emigration, war, and vendetta, humanity gained a more even footing. Dwarf culture was adopted by (or forced upon) humanity and the other races of the North and later the Ironcrags, but humans taught the dwarves the arts of restrained diplomacy, cooperation, and peaceful trade. Some say that the dwarves have mellowed over the years, but others claim that humans have simply learned to weather the dwarves’ pride and temper. Certainly the dwarves haven’t belied the “reaver dwarf ” name.
Gunpowder and Airships
The cantonal dwarves of Midgard are the only race with access to gunpowder and airships. This is purely an optional element of the setting, and gunpowder can be ignored entirely. If you choose to include gunpowder, gunslinger PCs in Midgard will require some connection to the cantons to gain access to proper guns, powder, and related materials.
Airships occupy a similar position. The dwarves built a few of them in the canton of Templeforge, but the crafts are delicate and expensive. Most are used for high-value cargos and urgent military matters, and only a few cantons have an airship of their own.
Ring and Rune Magic
These two schools of magic embed spells into rings of power and create carved runes that make magic visible and available to even nonspellcasters. The dwarves are particularly adept at these kinds of magic, since they are said to have invented ring magic, and to have learned rune magic at Wotan’s knee.