Astra and Flondrix by Seamus Cullen. It was published in 1976 which fits the time you remember reading it.
Astra and Flondrix represents a departure in the field of fantasy an erotic Tolkien. Seamus Cullen, using a humor ranging from the gentle to the ribald, has joined past mythology to a post-atomic age. In doing so, he has created a magical world for adults as unique as the one Richard Adams created for children in Watership Down.The book begins "many years from now," when, in a rude new world built in the atomized ashes of the old, a son is born to Barlocks, the Dark King - a son part mortal and part elf. This son, Flondrix, the product of Barlocks' unheard-of sexual transgressions with an Elvan princess, sets out on a gargantuan quest for both a past and a future, wending his way through neo-medieval kingdoms of dwarves, people, and elves. What the naive Flondrix never realizes is that he holds the future of the world between his thighs.The book's own special apocalypse is reached in the confrontation between the distorted skills of the scientist-sorcerer Kranz and the innocent sensuality of Flondrix and Astra, the daughter of the Elvan King. The a fourth world war - of magic.
I cannot find a copy of the book, but a searchable version is on Google books here. I am hesitant to add quotes, but searching the book for schlong provides ample evidence this is the book you describe.
One of the reviews on Goodreads says:
Elvish genitals come in pairs, while Dwarves have a more complex spiral arrangement (on which the male Dwarves spring across the countryside).