Oblivion:The Necromancer's Amulet

Quick Walkthrough
# Speak to Hannibal Traven a few days after completing A Plot Revealed. He wants you to retrieve the Necromancer's Amulet from Fort Ontus.
# Find Caranya in Fort Ontus and kill her when she refuses to hand over the amulet.
# Fight your way out with the amulet and return to Arch-Mage Traven.

Detailed Walkthrough
Council in Ruins
A few days after completing A Plot Revealed, the Arch-Mage will inform you that the Council is in ruins after the events of the previous quest (after having just fallen into disarray upon being informed of the return of Mannimarco). As a part of this more recent upheaval, two artifacts, the Necromancer's Amulet and the Bloodworm Helm, were removed from the University by Caranya and Irlav Jarol, respectively. Having continued misgivings for the safety of the items and their current caretakers, the Arch-Mage wants you to retrieve the items back to the University for safekeeping.

Being approximately equal in ease and difficulty, length and reward, and being unable to proceed until both are completed, there is no clear advantage of doing one or the other first and so the choice of which to complete first and which to complete second is up to you.

Good Girl Gone Bad?
According to Caranya, she took the Amulet to Fort Ontus in order to keep the University and Imperial City safe from being a target. The Arch-Mage will mark the location of the fort on your map, which is to the southwest of Chorrol.

While the Arch-Mage does not disagree with Caranya's claims that the University and the City would be safer with the artifact elsewhere, he has reservations about the genuineness of her intentions. 
thumb|right|Mysterious mages have occupied the fort

Inside the Fort
When you get to the fort, the apparently friendly mages inside will assume you are there to join their ranks. They will thusly direct you straight to Caranya, who can be found in the center of the Ontus Understreets. When you get to her, Caranya will reveal that she is a necromancer and that she desires to recruit you to her movement. After it becomes clear that neither side will agree to the other's wishes, she attacks.
Because Caranya is unarmored and allows you to get near her, she should not prove to be too difficult an opponent. She does however have powerful spells that could cause some serious damage when used in rapid succession, so using Silence and Resist Magic against her is recommended. 
Another strategy is to initiate the fight, then retreat back through the gate. You may then safely use ranged attacks, as the gate makes her spells inaccurate. When she has been killed, take the Necromancer's Amulet from her body.

Make Your Escape
The mages of Fort Ontus will now reveal themselves to be Necromancers and attack on sight. Individually, they are far weaker than Caranya, but can be deadly in groups. Killing them one at a time before you face Caranya is one way to avoid complications here.

After finding your way past the necromancers, return to the Arcane University and speak with Traven to complete the quest. If you have also completed The Bloodworm Helm, per usual, Traven will direct you to Raminus Polus for advancement to the next rank.

Notes
If you have started the Thieves Guild quest Misdirection, you will be required to pay a Blood Price when you kill Caranya.
The Necromancer's Amulet will disappear from the game once you turn it in at the end of this quest.
The Unofficial Oblivion Patch will place the amulet (along with the Bloodworm Helm) into the Arch-Mage's Night Stand, which you can then remove scot-free upon completion of the final quest in the Mages Guild main questline, Confront the King, since you will become the Arch-Mage and inherit the nightstand and all its contents.
The game's method of converting the mages to necromancers is to clad them in Necromancer's Robes, regardless of what they are wearing at the time, and removing any Mage's Robes they may be carrying. This means, if the player kills them before initiating the conversation with Caranya, the following will happen:
If the dead mage has their robe removed, the dead body will still become clad in a Necromancer's Robe
If additional Mage's Robes are placed on the body of a dead mage, all will disappear
Mage's Robes taken from bodies and kept or dropped will not change
  An achievement will be unlocked upon being promoted to Master-Wizard.

Bugs
 
This can be avoided by talking to all of them before talking to Caranya.
 
 
 
 

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