Foreigner Quarter/Elves

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:
Going down another level you will find 2 Elf Arcanists and 2 Elf Scouts:
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.
You can enter 4 different caves now, some containing only Dragons, some containing Hydras and Serpent Spawns as well.
*A: 11 Dragons and one Serpent Spawn
*B: 13 Dragons
*C: 9 Dragons and one Hydra
*D: 15 Dragons
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.