I am given to believe they do, as they obviously are male and female, but also because of following lines:

Excerpt from, "Notes on Racial Phylogeny":

"It is less clear whether the http://elderscrolls.wikia.com/wiki/Argonian and http://elderscrolls.wikia.com/wiki/Khajiit are interfertile with both humans and elves. Though there have been many reports throughout the Eras of children from these unions, as well as stories of unions with daedra, there have been no well documented offspring."

You'll notice the author classified the daedra along with with beast races of nirn, which obviously multiply. In addition, he or she felt it necessary to explain the no recorded offspring were produced when mixing man or mer with daedra. What can be inferred is, that the daedra, at least humanoid forms, are built with reproductive organs, which would be futile in having if said races were incapable of reproduction themselves.

I'm sure most of this seems fairly reasonable, (if not obvious) to you, (fellow forumers) but there is more to this issue,, which is why I am starting this thread.

First and foremost, it would seem that oblivion,(with it's inhabitants immortal in an ageing sense, at least) would be overwhelmed by daedra since there obviously would not be enough other worldly travelers killing them at a fast enough rate to contend. Needless to say, this is not the case.

Secondly, I have personally never heard of infant/child daedra of any form or race, but f course there are many who know more of this subject who may or may not have heard of them themselves.

In contrast to both arguments, however, perhaps there is a metaphorical, "happy medium" between being sterile and reproducing.

Opinions would be welcomed.

(sorry for any editing errors)

I'll answer it with this. "There have been no well documented offspring."

Can you cite that please?

Emmeg gro-Kayra

Arden Sul was the Son of Azura, if I'm correct, and as Malak said we have Emmeg gro-Kayra as the son of Malacath. So at least Daedric Princes can propagate.

EDIT: Of course you could consider the Tribunal, having always been their Anticipations, as Daedra (maybe?) and we all know how much Vehk loved to "propagate".

I think OP is meaning full-Daedra offspring, that is, a child of two Daedra.

It's obvious that Daedra are able to procreate with mortals but I don't think we have anything to say whether or not they can do so with eachother. The in-game book http://www.uesp.net/wiki/Morrowind:Aedra_and_Daedra says that Daedrra "cannot create". However this statement is made towards the creation of Mundus so it may not mean that they cannot produce offspring.

There is Molag Grunda, daugther of Molag Bal but the mother is not mentioned so it could be a mortal. Then again the child is meant to take after the mother and Grunda is a Winged Twilight...

While I don't have any backing for it I believe that the Daedric realms (Oblivion) are not unchanging like Nirn is. I believe it's commonly accepted (and maybe even stated in a source somewhere) that the Daedric Prince is their realm and that their realm is them. As such I see the world continually changing and expanding.

I also like to think that the lesser Daedra are parts of the Daedric Princes as well and that they do not always exist (but yet always exist). It is only when the realm wills them to do they re-enter the world.

I also thought that Daedra don't actually have genders and that their appearances are not actually their true form.

Simply put: the Daedra are not like us, not bound by rules and in the end are simply beyond our comprehension.

What about the grummites, scalons, and elytra from Shivering Isles? Are they even daedra? Daedra are only banished when killed and reform in the Waters of Oblivion, so they shouldn't need to reproduce like mortal creatures. So why are there beings in a daedric plane laying eggs?

Nope.

Parenthood is an entirely foreign concept to the Daedra.

Off the top of my head, I would say that Daedra cannot propagate. But then I see all these examples that throw that assumption out the window. And besides, Daedra are Daedra specifically because they chose not to create, not because they couldn't; to say that, because of their choice, they literally lost the ability to do so is illogical at best. It's possible that Daedra cannot create anything on Mundus. But then Daedric matings with mortals seems to throw that theory to the winds, too. [shrug]

Good way to explain it As Daedra can't exactly "create" things in Mundus, they can influence and alter things. So perhaps mating with a mortal counts not as a pure creation but as an alteration of a pre-created thing?

Also, Molag Bal is supposed to trick the Dunmer into spoiling their gene-pool with his filth as the King of [censored], so that's another prince who has a thing for mortals. I think it's safe to say that Daedric Princes can/do propagate with mortals and could so amongst themselves but choose not to because of the sacrifice involved in making their own mundus. What about lesser Daedroth? Can they reproduce?

Parenthood, perhaps, but they may be progenitors :

What about the children of Molag Bal/Vivec, for example?

From the In-game book http://www.imperial-library.info/content/spirit-daedra

Maybe:

Most supposed offspring of Daedra and mortals are more like the Daughters of Coldharbour.

And the presence of eggs on Daedra in the Shivering Isles is because they're mockeries of creation rather than functional oocytes.

And Vivec could only mate with Bal when he remembered he was a Dreugh King.

It honestly is kind of up in the air at this point and REALLY needs clarification. Especially because the Shivering Isles throws a wrench into everything imo.

Fanon- Speculation # 1

I would theorize that since mortals exist in that Daedric realm (Shivering Isles), that many of the critters we see are not really Daedra, but creatia from Mundus that ended up in the Daedric Lord's hands in one way or another and was manipulated. This allows them to create new things and is why they want Mortal Souls so badly. Daedric Princes see Nirn as a kind of art supplies store. It costs them some time and effort but they need materials to paint their canvas.

Fanon-Speculation # 2

Daedra give of themselves to procreate. Although that isn't a very accurate term for what goes on. Two Daedra that couple together give of themselves and knowingly diminish themselves, in order to foster another being based on their two matrices. This event is rare as the even the imitation of the concept of love is rare amongst Daedra.

When i look at deadra be it lesser or princes i see them as demons but i would speculate that the lesser beast like deadra would reproduce but in terms of deadra like dremora and xivali then id say that they would be more of man an mer being punished or forced into slavery by the princes hence the humanoid form.

Thats just what i think though.

Daedra don't create; that's what makes them Daedra. Rather then lose or compensate something that this their own in creation, they'd rather use something that already exists to get what they want. In fact that's how a lot of the races in Tamriel today exist. Rather than make a race of their own which would require giving something up, the Daedra just meddled in Aldmeri affairs and ancestors creating the Chimer/Dunmer, Orsimer, and Khajiit. Their own Oblivion Realms are just little false-Munduses mixed of magic, creatia left over from the original Mundus, and ego. Maybe the Daedra lack creativity and can only go by whatever sphere they embody as a template, but it's clear that they have no interest in going down the same road as their Aedric siblings.