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The Elder Scrolls IV: Shivering Isles Hints
Dagger of Friendship
1 of 6: This item can appear in a huge number of containers, but it's always random.
2 of 6: There's only a two-percent chance of getting a special museum item from each of those containers, and then there's a one-in-six chance that it'll be the Dagger of Friendship.
3 of 6: You could start by checking the cupboards that are on the second floor of many shops and houses in New Sheoth.
4 of 6: In fact, you could save your game right before entering one of those second floors and keep going in and checking the cupboard until you get something that's on the museum's list. (This would only work with second-floor areas you've never been in before, and is *immensely* tedious.)
5 of 6: Another possibility is to fully loot the Ebrocca Sepechra area several times, since it has a lot of treasure containers that might contain these items.
6 of 6: I certainly wouldn't blame you if you used form number 81E65 with the PC console instead of messing with trying to find one "fairly."