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There is a part of the Foreigner Quarter south-west of the depot of Yalahar where a number of elves live. Head South then walk to the entrance. There are normal Elves and Elf Scouts on the first floor. In the buildings you can find Elf Scouts and Elf Arcanists on the upper floors. It is one of the best places to hunt Elves, since Shadowthorn is often on fire and full of Firestarters after the implementation of World Changes.

The deeper parts are also called Crystal Lakes. You can access them by going down a ladder in the middle of this place (here). Going down you will find one Elf Arcanist:
Elves Foreign Quarter 1

Going down another level you will find 2 Elf Arcanists and 2 Elf Scouts:
Elves Foreign Quarter 2

Now you are in a place with 4 ramps: North, south, east and west. You can take any ramp to get down in an area with ~5 Dragons and ~5 Elf Arcanists.
Elves Foreign Quarter 3

You can enter 4 different caves now, some containing only Dragons, some containing Hydras and Serpent Spawns as well.
Elves Foreign Quarter 4

If you are a medium leveled knight you can hunt the Dragons and Elf Arcanists and gain ~65k/hour and good loot. Don't forget to bring your Obsidian Knife to skin the dragons.

Ground Level
NameExpHPMax. DamageLoot
Elf
Elf
4210040 Physical Damage
Elf Scout
Elf Scout
75160110 Physical Damage
Elf Arcanist
Elf Arcanist
175220220


Deeper Cave
NameExpHPMax. DamageLoot
Elf Scout
Elf Scout
75160110 Physical Damage
Elf Arcanist
Elf Arcanist
175220220
Dragon
Dragon
7001,000430 (120 Physical Damage, 310 Fire Damage)


Deepest Caves
NameExpHPMax. DamageLoot
Dragon
Dragon
7001,000430 (120 Physical Damage, 310 Fire Damage)
Hydra
Hydra
2,1002,350995 (270 Physical Damage, 405 Ice Damage, 320 Earth Damage)
Serpent Spawn
Serpent Spawn
3,0503,0001550 (250 Physical Damage, 800 Earth Damage, 500 Life Drain)
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