Cursors are the mouse cursor graphics. These are displayed at the current mouse coordinates.
They are 16x16 2 bit bitmaps. In SCI0, they consist of three different colors: black, white and transparent. Cursor resources also store the hot spots (where in the 16x16 area the mouse position is). The hot spot can also be changed at runtime within the scripts.
You can use the cursor editor To create and edit cursors.