Nonsense!
Dwarven babies are "born" from the interaction of male spores with the female's beard. Similar to the pollen interacting with corn silk.
During the "romantic involvement" stage of the courtship ritual, the female becomes biologically sensitized to the ambient spore emissions from the male's beard. When the female has become fully sensitized, they immediately "marry", which is merely a formal declaration of this condition.
From that point onward, the female's beard will collect spores released by the male, the spores will travel up the hair shaft, and initiate a "pregnancy".
The pregnancy itself is just a nodular growth that forms on the female's back. This growth goes completely unnoticed and unannounced, until it erupts. Upon eruption, a "dwarven baby" will fall out, and the previous point of attachment semi-scabs over, forming a rudimentary "teat". The mother will collect the (at this stage of development) parasitical infant, and place it in proximity to the reat, where it latches on powerfully. Scientific experiments involving high pressure water have shown to be able to dislodge the infant, where most other methods fail. There the infant siphons blood alcohol from the mother, until it grows large enough to consume solid food. This method of nourishment is why the female of the species exhibits a clear and complete lack of mammary glands in the conventional sense. The strength and voracity of the infant as it clings to the mother is quite remarkable, requiring almost complete submersion in fast moving current to dislodge it. This position on the female's back makes it highly susceptible to projectile injury, however. The "grown on the back" nature is also clearly exhibited by the frequency of miscarriages when expecting mothers are clubbed, or have things dropped on them.