Questions & Answers about Ég set hreina bleyju og nýtt snuð í töskuna.
set is the 1st person singular present tense of setja, meaning to put / place / set.
So:
- ég set = I put / I am putting
- að setja = to put
In this sentence, Ég set ... í töskuna means I put ... into the bag.
A useful point for learners: Icelandic often uses the simple present where English might use either I put or I’m putting, depending on context.