From Wyrd (I added the bold for emphasis.):
It's been a couple of years since I did it, so I'm going on memory here. It requires Wrye Bash. In the Mods tab of Wrye Bash click on your mod's .esp and select Import>Face. Then select the save file that contains the player character's face you want to import.
I seem to recall that there were two caveats. One, the NPC had to be of the same race and sex as the player character. Two, any appearance mods enabled for the player character also had to be enabled when running the NPC mod.
The discussion I remember but can't find was about him putting his old characters and the houses he made for them into the game world as NPCs once their stories were complete. That's exactly what I want to do for my story crew, since they all have their own games now. (And I think also what you want with the handsome Dunmer save, but I've never used one of those so I'm probably missing a critical detail.) Looks like I need to Summon Stones and get Wrye Bash.

EDIT: D'oh!! Found the comment right here in Chorrol's Skyrim General. I was looking in the wrong site.
QUOTE(Pseron Wyrd @ Jun 12 2013, 10:28 PM)

I used to do this a lot in Morrowind and Oblivion. After a character's story was over I'd "retire" her as an NPC. I used to make unique houses for all of my characters and after their retirement I'd put them in these houses and they'd putter around their gardens for the rest of eternity.
Some of my characters would visit older character from previous games. I sometimes used this as a way of explaining how a character knew certain facts about the game world that I couldn't otherwise explain: she learned it during a visit to an older character.
I haven't done this in Skyrim yet. But I'm sure I will.
As above this is about Oblivion, though the other thread started regarding how to do it in Skyrim.
This post has been edited by Grits: Sep 7 2013, 03:11 PM