So, in the level where you get to take down the executioner, you discover that he too has powers. He can pull you closer and isn't affected by time stop. He has a shrine dedicated to the Outsider and a letter from his granny. I don't remember exact contents of that letter but it made me think that it's from Granny Rags? Thoughts?

I made a post about this with the same conclusion. The granny says in the letter for him to come home to play with knives. Granny has alot of knives and even says some ramblings about loving to play with knives aswell. Its pretty much a given.

Or maybe she *says* he is her grandson. The same way she confuses you for her husband.

I'm not sure if I'm remembering correctly, but I'm pretty sure that there are other Outsider shrines in the game that have notes from Granny Rags near them. I think she just generally is a leader of those that worship the Outsider and visits them and refers to them as her children, or grandchildren. I just finished my high chaos playthrough (so I didn't kill Granny Rags), so maybe I'll be better informed if I do. But at this point I'm not even sure if she's human, or alive and not some kind of specter.

Interesting theory. She is a after all.

Yes, definitely. If you have the Arcane Assassin pack, you get the unhidden book "The Journal of Granny Rags", which contains this paragraph:

"I brought the old bones home. Hid them from my dear husband. Then I learned to boil them and carve them myself. They made such good presents, dearie. The little mute boy took them home. He loved them so. All the time he came back with new bones for me, holding them up so I could see it in his eyes, even though his tongue was still. Granny, his eyes would say to me, carve these bones for me. Make me another present. And he went so far, so far, all the way to Dunwall Tower, the Royal Headsman himself now. My little mute boy and his shiny, shiny sword."

In which level is this? i haven't met him.

Whoa Mind=Blown