The city has lots of Elves and Elf Scouts on the ground level and on the houses. During the Thornfire World Change, however, those will be gone and Shadowthorn will be inhabited by Firestarters. There are also Elf Arcanists in the deeper caves. The main building contains all kinds of Elves, including Elf Arcanists, and even some Dragons, Ghouls, Demon Skeletons and Cyclopses.
On the lowermost level, close to a single Dragon spawn, you can see strange carvings in the floor. These strange carvings seem to be placed with a regular order, not randomly, perhaps this is one of the dreampaths the Teshial caste has developed in their time.
This hunting spot is perfect for low level paladins, as the Elves drop lots of Bows and Arrows. Just remember to bring potions and food to heal yourself, as the Elves don't drop very good food and little of it.
With the 9.8 update access to Shadownthorn is considerably easier than before, mostly with the introduction of an east city exit. The following image shows the quickest route, although there are many distinct routes to take. Although not required, a Machete and Shovel are recommended to navigate the swamp.
See also other Hunting Places.