Grey dwarves are frustrating for the rest of the game. If you make any noise at all, expect to encounter them in the forest or at night anywhere.
- they run from fires. If you want to mine, a fire or two will keep most of them running around instead of attacking. This also makes them a pain to kill, though.
- the green ones are priority as they heal the others.
- the big brutes are next, as they hit kind of hard and are an actual danger.

Other than this, learn to use a shield so you can block their rocks and attacks, cut them down or use fire arrows.

they have spawners in the forest that never stop. You have to rush or sneak in and smash it before it spits out more. Its near impossible to mine or do much else near one.