Thanks to the Ta'agra Project I can put a name to the idea. Owaziit, "Snow Walker".
"Lost" up in the Jerall Mountains, a village began as a Baandari Caravan on its way to Skyrim. The Caravan needed to set up camp to ride out a storm, and initially planned to set off again on their journey, however the storm persisted and the passes grew treacherous, the camp was forced to become more permanent. Over time, they grew accustomed to the land they'd been forced to live off, some suggested to stay amidst the mountains. When the storms cleared and other travelers happened upon their camp along the way to or from Skyrim, they traded with the Khajiit for cooked meals and items for the journey. This bred the idea of a permanent Baandari Outpost, a half way mark between Cyrodiil and Skyrim to rest and trade.
Over the generations the Khajiit and their descendents living in the snowy mountains grew to acclimate to the new environment. Thicker coats, as white as the snow around them. Other Baandari from Elsweyr coming across this village of now strange looking Khajiit would go on to their destinations, mentioning the lost snow walkers of the Jeralls. The Owaziit.
Eh? Ehhhh?
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