Since I'm here, I'd recommend any of the following:
* Hobbit/Lord of the Rings (has been mentioned already) - a lot of dwarfish character shows through in both the hobbit and the rest of the books. Mostly the hobbit of course.
* Cleric's Quintet by RA Salvatore, for the dwarf brothers. Oo-oi! They're tough as nails.
* other series by RA Salvatore in which they travel to the Underdark--I'd love to see an open and scary underworld in DF, in which you're afraid to scout ahead, and afraid to leave any caverns open and unguarded. In which there is a variety of plants, mushrooms, fungi and forests made up of all these. In which there are a variety of predators. In which there are entire civilizations of scary creatures.
* Six-part War of the Spider Queen, set in the Forgotten Realms Underdark also...for a fun representation of the duergar.
* Dragon Age books by EE Knight - I've read the first two and this is one of the few settings where the author does not try to impose morality upon the story. Only a few books I've read manage to pull off this attitude--this series and (much older) Richard Knaak's dragonrealms series. Where you happen to be rooting for the protagonist, but not because they're necessarily...better. Dwarf Fortress seems to be set in a similar a-moral setting. In DF, the dragons aren't evil and the dwarves aren't good, and the elves CERTAINLY aren't good...they just are. The same holds true with the Dragon Age books (in which the dragons CERTAINLY aren't good), and for the dragonrealms series, in which the protagonists attempt to keep their civilization at the pinnacle, and must fight dragons and Quels(?) and other races who are trying to dominate. I'm not expressing myself particularly well, but the point is, the setting is amoral, and this is unique among fantasy settings.
* The Parched Sea (also Forgotten Realms), wherein lizardmen crawl out of the well and ambush the protagonists. Just this one scene stood out.
* The Weirdstone Of Brisingamen - this is apparently a fantasy classic, classic in the sense that it was written a long time ago--notably, it isn't as set into the loosely-shared orcs/elves mythology everyone else seems to write about nowadays. Refreshingly unique, contains an underworld populated with creatures of all kinds, and of course, dwarves.
Though I've read quite a few (non-Forgotten Realms, believe it or not) fantasy novels, I don't recall much time given to a deep dwarven perspective with the exception of the "Dwarves" book and those mentioned above. Hmm.
edit: oo-oi!