Board Thread:Lore Discussion/@comment-180.95.18.10-20130517043142/@comment-6881629-20130517111526

Well here's the bit of the legend, copy/paste from the wiki page -

Azurah chose a group of forest dwellers among Nirni's children, and from them, she formed the Khajiit. Nirni was furious at this, and ask her sibling Y'ffer to punish the Khajiit. He did this by turning their grasslands into a dry desert, and their forests into poisonous marshes. The Khajiit, however, were protected by Azurah, who taught them the secret of the moons (the Lunar Lattice in Khajiiti terms), and how to change their shapes to survive. Those forest dwellers who stayed true to their mother, Nirni, were turned into the Bosmer, and given the lush forests of Valenwood as their home.