Quick guide:
1. Travel to Khenarthi's Roost (wayshrine is called the same)
2. follow the path/road north. taking a left @ the first cross-section (c-s for reference)
3. carry on up (right) on the 2nd C-S
4. right on the next C-S, you will see alot of sheep.
5. Kill sheep
6. farm until your bored / about 2 stacks of guts will be fine (400 total)
7. visit any outlaws (I prefer vivic city)