FINAL UPDATE
Ok my Paladin Character is completely finalized. I used two handed weapons and spammed potions to get my level up, and the character is now at level 64, where, since I am not using any other skills, it is likely to stay permanently. I have struck the right balance between Effectiveness and Role-Playing, and here's what you need to know:
I have two sets of equipment I keep in Proudspire Manor, besides my numerous trophies. One is what I call my "Dragonborn" Set, comprised of Legendary Dragonplate Armour, a Dragonbone Sword, and a Dragonbone Bow. With excellent enchantments, this set makes me an absolute tank, and whenever I do the main quest, I make a point of having this outfit on. If you feel like having THE most effective weaponry, you can simply keep this equipment on the whole time and never use anything else. But when I feel like roleplaying, I switch to:
The Dawnguard Set.
(assume all pieces to be legendary quality)
-Dawnguard Armour w/Health, Stamina and One-Handed Enchantments
-Auriel's Shield
-The Dawnbreaker
-Auriel's Bow
Regardless of which set I'm wearing, I also wear an enchanted ring which reduces Restoration spell cost by 50%, and the Gauldur Amulet.
Picking your Aetherial Item
Despite how awesome the crown is, you have to sacrifice your helmet to use it. For a mage, this is fine, but not for a warrior, so the Crown is out. At that point, decide whether you will use the Aetherial Shield or not. If not, get the staff. If yes, then take this advice: it's more useful than you think. If you constantly powerbash people with it, they will never ever ever do any damage to you. It's a "WIN" button - so "WIN", in fact, that I keep it as a trophy on the same manaquein as my Dwarven Armour - it just became too easy.
Using Restoration to Kick Some Serious Ass
Those snobs who blow Restoration off as nothing but Druid-esque mystic plops obviously haven't seen what my character can do:
First tip: get duel casting. Duel casting the Greater Ward so amplifies its power that it can block almost any attack thrown at it. Dragons simply aren't a problem anymore, as long as you cast it before they attack so the Ward has built up to full strength.
Duel Cast Grand Healing instantly gives you over 400 HP. That, combined with Second Chance, means that even if you run around in robes instead of armour (which I tried out once for plopss and giggles), it's still difficult to die. I honestly recommend you play on Master difficulty if you play as a Paladin - otherwise, it just gets far too easy (even then, the damage they do doesn't matter much - remember, instant 400 HP).
Duel Cast Vampire's Bane can be spammed like a Destruction spell to blast undead without even using your sword. The spell is so cheap yet so effective that Undead are not challenge whatsoever - lowly bandits are more of a challenge. Turn Undead spells are therefore useless once you acquire this spell.
This whirlwind of un-killableness makes the Master spells kind of pointless - but they're so cool that I find excuses to use them. For example, if you get rushed by a swarm of low-mid level undead, cast Bane of the Undead - though it has little effect on Master Vampires and Draugr Deathlords (other than turning them, they take almost no damage), anything less powerful than them will be instantly incinerated. Guardian Circle is for when you feel like using a bow to fight the Deathlords, or wish to fight a necromancer without having to deal with his minions. The circle turns pretty much all undead creatures, allowing you to blast them with Vampire's Bane or Auriel's Bow form the safety of your circle. And if the Deathlords pull out bows, or you need to deal with the necromancer producing the shambling beasties, rest assured you can pick at him with a bow, and his zombies will be unable to touch you. As well, any damage you incur is healed at a rate of 20/second. In fact, during an extended melee, you can use this circle to heal yourself without switching to a healing spell, allowing you to keep your shield raised. Three particular instances where I used it were when fighting Duurneviir; when fighting Lord Harkon; and in the final battle with Alduin.
Recommended Quests:
-College of Winterhold
-Main Questline
-The Dawnguard
-The Companions (on the condition you cure everyone, including yourself, of Lycanthropy)
-Destroy the Dark Brotherhood
-After doing the main quest, use cheat codes to make the Thieves Guild members killable and slaughter them all
-Daedric Quests ONLY FOR THE FOLLOWING - THE OTHERS ARE TOO EVIL: Meridia, Peryite, Hermaeus Mora, Malacath, Sheogorath, Sanguine, Hircine, Azura (but turn her star into the Black Star in the end)
Good luck all, and may you all bring righteousness and order to Tamriel!