Elves are the citizens of one of the four great kingdoms on the other side of the universe. Their general life involves granting wishes in exchange for babies, crying Elf Tears over issues of Hunk Rump, playing poker, and absconding with the pies of Clowns from windowsills. Elves are known practitioners of Majyyk and their most valiant warrior is a Mage.
Most of their political dissension stems from Problem Sleuth's Quest of Spirit, encouraging the Elves to be more thrifty when stealing Pies, which makes the Clowns go into a rage.
The Elves are aligned with Problem Sleuth and granted him a boon when he completed his Quest of Spirit, which allowed him to pass through the Elf bust and gain awareness of his Female Alter Ego.
Note
Elves may or may not be real.