Small Egg Farming Location (Classic - WotLK)
The best location in the game for you to farm Small Eggs during Classic WoW are the Moonkin in Darkshore. They're a tad bit east of the Alliance town of Auberdine which gives Alliance a massive advantage on PvP servers when it comes to farming for this item.
For 11 months out of the year no one cares about this item but when the Feast of the Winter Veil comes around everyone and their mother will want some Small Eggs because they're used in crafting Gingerbread Cookies. Gingerbread Cookies are required for the Feast of the Winter Veil quest that gives you access to the Christmas presents under the trees. Every single person who wishes to open the presents on Christmas will have to purchase or make 5 Gingerbread Cookies.
If you don't want to farm Small Eggs yourself, then I would recommend you spend time stocking up on them prior to Christmas. Throughout the year you can find them on the Auction House for rather cheap, then you can sell them during the month of December for 10x (or more) the price you bought them for!
For Horde players on a PvP server.. the only location in your territory that you can farm this item is in Mulgore and the drop rate is terrible. Until Burning Crusade is added you should expect to hunt in enemy territory if you plan to farm this item.
Items of Interest
Super Low Level Vendor Trash (if you even want to loot it)