How do I cannibalize people?

The BBFC has confirmed the existence of cannibalism in Skyrim. I'm curious as to how this aspect fits into the game: Is it quest related like in Fallout 3? Where does the quest originate?

What are the pros (quest rewards, etc) and cons (reputation decrease, etc) of choosing to cannibalize?

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1 Answer

You'll get the ability to eat any humanoid creature by completing a quest chain that results in acquiring the Ring of Namira.

In Markath, you'll meet Kleppr and Frabbi, who will tell you a rumor about the Hall of the Dead. This sets up a quest chain that eventually leads to meeting Namira, who will give you a choice as to whether or not you should consume your first dead body.

If you do, she'll grant you the ring, and when wearing it, you'll gain the cannibalism ability.