You sir, fail at Google. This setting has been available from the beginning!
Type "about:config" into the address bar.
In the filter, type "cache" to see the settings related to caching.
There's a setting there to completely turn off the cache if you like: "browser.cache.disk.enable"
To choose the folder, create a setting "browser.cache.disk.parent_directory" and set it to whatever you want.
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