Go to: Drive Letter:Program FilesSteamsteamappscommonskyrimData
For those who don't have bought the game on steam, the SkyrimPrefs.ini file is located in Drive Letter:UsersDocumentsMy GamesSkyrim

1. Drop the 'killable_children.esp' in that folder
2. Launch the Skyrim Launcher, and click on 'Data Files'
3. Tick 'killable_children.esp' and click 'Ok'