Exquisite boots are a quest item used during The Giant Dwarf quest. They must be stolen from Dromund, a Dwarf who lives on the west side of Keldagrim. The left boot can be stolen by taking it when Dromund isn't looking, and the right boot must be stolen by using Telekinetic Grab through the window of his house.
Once the player has obtained the boots they must be taken to Blasidar the Sculptor along with the repaired Dwarven battleaxe and the exquisite clothes so that he can dress his model for the new Giant Dwarf statue.
Riki the sculptor's model wearing the exquisite boots.
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