You need to get things from dwarfs? Lunk understand. Lunk have a better way.
Listen: you go fight dwarf, but do not kill! Just fight until dwarf get tired. Then Lunk will help dwarf fall asleep. Dwarfs probably just cranky because they don't get sleep.
Come on! Trust Lunk.
Completion
Dwarfs is going to sleep good tonight.
Lunk hopes you got everything you were looking for. Now time to go off and find other adventures.
Bye!
Notes
While out and about killing Dark Iron dwarves for Recon Essentials, Lunk shows up with this quest. Accept it before the corpse of the dwarf despawns or Lunk will disappear. Then weaken dwarves so Lunk can do his thing. After knocking them out, Lunk will toss the player whatever was on the dwarf's corpse, including possible quest items.
Weaken:
Dark Iron Steamsmith says: Ugh! Why are you WET!?
Dark Iron Steamsmith says: But... but...
Dark Iron Steamsmith says: That's... one... giant... keester...
Dark Iron Steamsmith says: Why did it have to be... a smelly ogre...
Dark Iron Steamsmith says: Where... did... he... come from...
Sleep:
Lunk says: You take dwarf's things. No need to kill.
Lunk says: He will be sleepy for a while. Lunk know. Lunk do before.
Lunk says: Here, I stealed this from little dwarf.
Lunk says: Sitting easier than killing.
Kill:
Lunk says: Why you do that? Why you kill?
Lunk says: No! No kill!
Lunk says: You hurt Lunk's feelings when you kill.