Who is Dwarves from The Silmarillion and what is their importance?

Aule creates the Dwarves in order to have someone to teach before the Elves and Men awake. Iluvatar chides Aule for this but, in his great mercy, does not force Aule to destroy his creation. Aule makes the Seven Fathers of the Dwarves. The Dwarves are also referred to as the Naugrim or "Stunted People" by the Sindar. The Dwarves call themselves Khazid.