What Is The Sniffer?
The Sniffer, the latest Mob to be added to the game in Minecraft 1.20, has been described by the team at Mojang as an "ancient mob", long considered extinct, that you'll need to revive by finding their Eggs underground.
Sniffer Eggs can be found in suspicious sand, alongside other items like pottery shards. Once hatched, the Snifflet will grow into a Sniffer that will sniff the ground, and seek out plants and seeds, digging them up for you to collect. The Sniffer can even help discover seeds for brand new decorative plants, meaning this Mob's addition to the game will likely bring with it even more stuff to discover!
The Sniffer is also one of the largest mobs in the Overworld, dwarfing your player character by a considerable margin!
Sniffer Egg
The Sniffer Egg can be found in the Suspicious Sand block within the Warm Ocean Ruins location. When two Sniffers breed, they will not immediately spawn a Snifflet (like other breeding animals), and will instead drop a Sniffer Egg.
In order to tempt (and breed) Sniffers, you'll want to use Torchflower Seeds.
In regards to the Egg hatching, on every block in the game the Egg will hatch in around 20 minutes, but if you place the Egg on a Moss block, the Egg will hatch in just 10 minutes. Either way, once the Egg is done incubating, a baby Snifflet will emerge into the world!