Second: When you have dialogue, the correct way of setting it out is to start a new line. For example...
We reach the Khajiit caravan without any further trouble, but I pull up short. Aventus turns to me, noting my uneasiness.
“Dasdan? What’s the matter?”
“Those Khajiit, they move in and out of Elsweyr rather frequently.”
“You know them?”
“More or less, yes.” I nod.