The task is simple - locate seven Chilly Gnomes and 'search' them, which basically means you have to interact with it like you would with a chest or supply drop. The gnomes have been frozen in cubes of ice.
One of the chilly gnomes is next to it. Between Frosty Flights and Snobby Shores is a forest on top of a hill, with a hut in the centre. South-east of Frosty Flights is a hole in the ground surrounded by trees, not too far from the southern cliffs. East of Happy Hamlet is a cliff edge with jagged ice structures.
Fortnite Search Chilly Gnomes: Seventh gnome. The seventh and final chilly gnome we recommend you visit is also to the east of the last one. To be exact, it is slightly to the southeast. It is directly to the east of Polar Peak and just to the south of Shifty Shafts.