These drop fairly regularly from any of the halflings in Nektulos. The challenge is killing them fast at the level hunting them has the most benefits quest wise.
My troll Sk was killing the halflings anyways, so I kept these to hand in to the cleric GM for faction ups. The quest still works (innoruuk initiate), you just need to be above indifferent for him to accept the items.
As a troll I had access to the note of recommendation npc in Grobb (I believe she also exists in east freeport). Turning this in 2x was big faction ups.
I was able to turn in leatherfoot skull caps to the same npc at a lower faction level, so that is an alternate route too.