i think there should be a character that resembles a warrior who has mastered all skills, magic and mele, and when you talk to said warrior, (s)he will say something along the lines of "what is your prefered skill?" (destrucion, conjouration, alteration, illusion, resteration, one handed, two handed or archery) next they will ask "what about armour" (light, heavy, or magic robes corresponding with the magic school you chose if that was you answer for the skill question) then the dragonborn will give their answer then the warrior will say "you wanna fight?" and you battle full fledged with whatever you choose and you will try to kill eachother. if you die, well, you die.
when the warrior dies:
if you chose varaible X for your magic school, then you get one book from each level (novice, apprentice, adept, expert, and master) of the school of X. the level of robes you get from that school, dependes of your character level
if you chose one handed, two handed, archery light or heavy armour, then you get the armour that is crafted out of the highst material your character level allows