Modsognir and Durin
Modsognir ("frenzy-roarer") and Durin ("sleepy") were the first two dwarves who were created by the gods. They were originally maggots that fed from the flesh of the giant Ymir. These two dwarves became the first ancestors of the dwarves. The Voluspa (from the Poetic Edda) says that they were created from the blood and bones of Blain (Blain is probably another name for Ymir). Then there were dwarves from the earth, and the prophetess goes on to list the names of some dwarves. There was also another group of dwarves who were known as dwarves of the rocks.
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By Jimmy Joe