I really hope dwarf fortress gets more v50+ modding tools by the time they start introducing magic system stuff, because i really want to actually make my funky dragonfolk civ mod for it. but it requires stuff i dont think can be done currently, like custom site types etc, and i want to integrate them with magic systems when those get added
basically what im wanting to do is have them basically live on top of mountains. and i want them to have a cultural knowledge of magic specifically regarding geomancy, which they use to carve their homes right into the mountain peaks. i also want them to have a somewhat rare chance for a given individual to have innate magic power far surpassing their peers, and for those individuals to typically venture out into the wider world as adventurers and the like.
as for how they get food and such up on top of mountains, they'll have the "at peace with nature" thing the elves have that makes wild animals not hostile, and they'll have domesticated giant mountain goats and such that they use for food and clothing and the like