Great thread! I usually play ME games with the Dux Arda fan mod for the Dux Britanniarum Dark Ages rules. From Dux Arda:
On Magic in Middle Earth
We include Magic in Dux Arda, but only the “common” magic of the peoples of Middle Earth. For example, Wise Men, Runes Smiths, Crones, and Sorcerers (who channel the power of dark spirits aligned with Sauron) may have access to special knowledge and powers that can aid in Pre-Game or during a Battle; while Elves may be able to confuse a foe with illusions.
High Magic is only wielded by the mighty Wizards (Maiar like Gandalf, who are essentially minor Angels) and Sauron. Sorry, no flinging folks about with blasts of Magic. Instead we stick to the Magic in Dux Britanniarum rules in the Too Far Lardies Christmas Special 2015, modified for each Faction in Dux Arda.
https://sbminisguy.wordpress.com/2020/04/11/dux-arda-full-faction-book-cards-for-wargaming-middle-earth-with-dux-britanniarum/In the Book of the Dwarves campaign book I provide some examples of Dwarven magic, based on scraps of lore I could dig up from Tolkien's various letters and Silmarillion works, and so on, and some other canon-style materials:
https://sbminisguy.wordpress.com/2019/02/04/faction-book-for-dux-arda-durins-folk-book-of-the-dwarves/DWARVISH MAGIC
Status Level Powers
Kazak Rikkin For a Thief’s Hoard a Dushuk (or Healer) may join your retinue.
Kaz'ad Rikkin For a Tribune’s Tribute, an Urû (or Wise One) may join your retinue. Will fight as a Warrior.
Thuum You may build a Smithy for a Patrician’s Purse. This will take 12 months to complete, at which point a Master Smith will join your retinue. Will fight as an Elite.
King A Rune Smith will join your retinue if you build a Forge for a Prefect’s Riches. Will fight as an Elite.
Dushuk
These are low level healers who have some knowledge of plants with which to heal wounds. Some say their powers go beyond this life, but then there are many fools who believe anything. These will reside in the Lord’s halls, never venturing out into the field with an Army.
Ability: If a Noble or Lord is killed in battle the Dushuk may administer potions in the hope of fending off death. After a battle, on a D6 roll of 5 or 6 the Dushuk will restore a slain Noble to life. He was mostly dead, not all dead!
Urû
These are recognized Wise Men who have considerable knowledge of things of this world and beyond. They may accompany a Lord into the field with his Army where their knowledge can be of practical use.
Ability One: If a Noble or Lord is killed during battle the Wise Man may administer potions in the hope of fending off death. On a D6 roll of 4 to 6 the dead Noble will be restored to life.
Ability Two: Seek Aule’s favor - Begnino Numinae. The Wise Man may call upon his deep reverence and knowledge of the Valar Aule for favor and guidance in the coming battle.
Ability Three: Create a Life Sustaining Potion which may be used once by one Noble or Lord. This involves lengthy alchemy and will cost a Thief’s Hoard to produce.
Master Smith
These are highly skilled smiths who can work magic into the weapons and armor they produce. They have all the abilities of an Uru but also add a fourth ability.
Ability Four: Forge a Magical Blade which enhances the fighting skills of a Noble or Lord who wields it; or a Magical Armor which protects the Noble or Lord in battle. This involved intricate metalwork and will cost a Tribune’s Tribute to create.
Rune Smith
These are highly skilled Master Smiths who are steeped in the old magics of the Dwarves, and can work magic into the items they produce. They have all the abilities of a Master Smith but also add a fifth ability.
Ability Five: Create magic items of power. They may produce a Powerful Magic Blade, or a Magic Horn. This involved intricate metalwork and will cost a Tribune’s Tribute to create.
Dwarvish Spells & Magical Items
Spells or magical items of the Dwarves are handled as follows:
Life Sustaining Potion
When the Noble or Lord using this potion suffers his first wound of the game, reduce his Status as normal, but do not roll for Force Morale as his men are aware that he will not be hurt due to this protection.
Magical Armor
A Noble or Lord wearing this armor completely ignores the first wound he suffers during a game. Do not roll for Force Morale.
Magical Blade
A Lord or Noble wielding this blade will add 1D6 when fighting in combat.
Powerful Magical Blade
A Lord or Noble wielding this blade will add 1D6 when fighting in combat. He may also reroll the first 1 rolled in each Phase of combat.
Magic Horn
Once per game a Lord or Noble wielding this magic battle horn may blow a rallying call which heartens those who can hear it. This provides an immediate Rally action to all Groups and Formations within 3d6+6 inches of that Lord or Noble figure. They may remove 1d6 of Shock. This also adds a +1 to the dice roll to any attempt to overcome a Spirit Wall.
Feel free to add your own items to this list. The Dwarves were great crafters, and common items could include weapons, armor, rings and jewelry, instruments and clever mechanical devices.