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Where do elves come from?

From pine cones! Whenever more elves are needed, Eeko the mystical elf of the Enchanted Forest, gathers cones from the magical Fir Tree, wraps them in her moss blanket to keep them warm, whispers her special rhyme;

 

“Little elf grow from this cone

This shall be your happy home”

 

And a new elflet emerges the next morning.