Papa Moglin

Location

2 screens left of the Green Frost Moglin, the one which gives you the Small Gift Box and the Small Dragon Gift Box.
Right above the purple Frost Moglin, which gives you the Large Gift Box and the Large Dragon Gift Box.

Appears after completion of Icemaster Yeti's Cave quest to provide a shop.

Season's Greetings, [Player Name]! If you have an ice dragon head I can make it into a healing weapon for you.

He only provides the dragon head weapons.