As a pending refugee from the silliness of Gnome3 and Unity I an just beginning my exploration of KDE. I was glad to find that going into System Settings/Input Devices/Mouse/Themes resulted in a fast and clean change to my mouse theme. Quite a thrill after the agony of doing this in Gnome. But when I upgraded my KDE to the latest 4.7 version I was really dissapointed to find that System Settings had been stripped of its ability to change cursor themes. So far I have found no way to do this at all and I'm tireing of needing to fight to do configurations. My opinion--this change is a bummer and how many others await?

Its available under Systemsettings > Workspace Appearance > Cursor Theme

hint - use the search field on the system settings tool bar