How to get Stalhrim/Ice Armor - Elder Scrolls: Morrowind
Ice Armor, also known as Stalhrim Armor, is one of the best Medium Armors in Morrowind. This armor was added into the game during the Bloodmoon Expansion Pack and in order to get access to the person who creates the armor you'll need to complete about half of the East Empire Trading Company quest line.
Once you complete the Discovery in the Mine quest you will be able to create Stalhrim Armor. If you sided with Carnius then you will have to talk to him when you want the armor made - if you sided with Falco then you'll have to speak with Aenar, one of the 3 Nords at Graring's House in northern Solstheim.
Note: Siding with Falco and having Aenar produce the armor only costs you 1 Stalhrim per piece of armor. If you sided with Carnius he requires 2 pieces of Stalhrim per armor; double the price.
As for the Stalhrim you will need to collect it from dungeons throughout the island of Solstheim. In many different dungeons you will occasionally find a skeleton encased in what appears to be a block of blue ice. You can see a picture of what I am talking about at the start of this guide.
Once you complete the Discovery in the Mine quest you will be rewarded with an Ancient Nordic Pick Axe which will allow you to mine the Stalhrim from deposits and use it to craft armor. To make things somewhat easier for you I have included maps below of northern and southern Solstheim. Every dungeon I know of with Stalhrim in it is circled in red. The location of Aenar and his friends is circled in purple.