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Location: Skaal Village, The Greathall, Tharsten Heart-Fang
1. Tharsten Heart-Fang tells you to meet with Korst on the eastern shore of Lake Fjalding for further instructions. He's actually right on the northeastern tip of the lake.
2. Speak with Korst, and you'll find out about two things. This is the first time you hear about the Bloodmoon Prophecy, and you'll also get your next quest. You'll undoubtedly see a large fire in the middle of the icy lake. He wants you to investigate it, and kill Aesliip, a Draugr Lord he believes responsible.
3. You'll need to go underwater again. Head to the approximate location of the fire on the lake underwater, and you'll discover the "Caves of Fjalding." Enter.
4. The dungeon is fairly straight-forward to navigate. Head to the end of a long twisty corridor to "Aesliip's Lair," enter and you'll encounter the Draugr Lord which will begin conversation with you. You can either choose to listen to his plight, or kill him on the spot. If you listen, you'll get a chance to join with him to fight against the frost atronachs across a portal in his lair, to once and for all stop their dominion of the lake.
5. If you choose to join with Aesliip, he'll open a portal in the lair to "Aesliip's Caverns." Enter and wind around the dungeon with Aesliip fighting Dire Frost Atronach's throughout, which are pretty potent creatures, until you've defeated them all. Once the task is complete, your journal will update and Aesliip will give you his enchanted ring, a nice find, and then will die.
6. Go visit Korst again on the shore, and he'll tell you to again seek out Heart-Fang in the Skaal Village Greathall.