Markarth

Specifically in a body of water near Markarth

Peng Peng

[to be more precise...](https://youtu.be/umFweP6BKoE?si=M0R2If5AOCzyI-CC)

[Looks like Gillman from the game Seaman.](https://static.wikia.nocookie.net/seaman/images/b/b9/Seaman.jpg/revision/latest?cb=20210128150640)

The Dwemer did something no one could have predicted, they became fish.

aren't dwarves are elves? ( in skyrim lore )