I agree a tiny bit with with the comment about returning Caras Galadhon, but I think you should do: dwarwen supremacy where all captured cities east of Mirkwood are handed to Erbor and all Angmar and Enedwaith lands are handed to the Ered Luin.
Dwarwes in Third Age TW are built for going on an "tank expedition" where one gathers an massive heavy stack, takes a town each turn, and hand them over to an ally who can do the governing while the stack continues, only exchanging with replacements from the "core" or from a single "Forward operating Base" once every 10 turns or so. You should do the "heavy stack ally" once you have taken the Misty Mountains, to "link up the Dwarwen lands" in the North. Also: maybe turn off the fog each 5 turns to see how the allies are doing.