The Grim Adventures of Billy and Mandy - Season 3 - Eps 15: Here Thar Be Dwarves!
As Billy walks into the woods to have a picnic, Yogi and a giant, feral version of Boo-Boo (from The Yogi Bear Show) come to steal his basket, and he escapes by hiding in a cave. Billy is taken to the mushroom lair of the dwarfs where King Beardbottom tells him the story on how the different races split the food-services industry, after the conference of Rivendell. The king sends Billy to infiltrate the elves' cookie factory to deactivate their force field, so the dwarves can assault the factory. After a fierce battle (censored out "for younger viewers", by a single clip of a pink koala continuously licking a eucalyptus leaf) and Billy's words, the elves and dwarves decide to work together and split the profits.
About The Grim Adventures of Billy and Mandy

Title: The Grim Adventures of Billy and Mandy
First Air Date: 2001-08-24
Last Air Date: 2007-11-09
Status: Ended
Rating: 8.045/10 (from 958 votes)
Language: EN
Seasons: 8
Total Episodes: 184
Network: Cartoon Network
Genres: Animation, Comedy, Kids
Production Companies: Cartoon Network Studios
Synopsis
The exploits of the Grim Reaper, who has been forced into being the best friend of two children. A spin-off of the show Grim & Evil.
Cast

Greg Eagles
Grim (voice)

Richard Steven Horvitz
Billy (voice)

Grey DeLisle
Mandy (voice)

Vanessa Marshall
Irwin (voice)