Mostali are the original humanoid creations of Mostal (for certain values of humanoid) that were blessed with creativity in Making (unlike other creations that, while sort of alive, only functioned) and their offspring/copies. Since Mostali reproduction is even less known than dwarf reproduction (which apparently uses both biological means and machines), I cannot say whether true mostali can still be born/created within Time.
In the Second Age, Mostali from Greatway or the Dwarf Mine in Dragon Pass participated in breeding experiments - definitely cross-species (Pavis, the Flintnail dwarves), and quite likely also within dwarfdom. Any results of that have not been seen up to today, but the 10,000 dwarves at the Iron War came as a surprise, too.
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