alt3rn1ty, you have made my day! Updating my graphics driver worked! Thanks for the tip man!

No problem

, I was confident because the symptoms are so distinctive. Skyrim has other shadow problems too depending on your hardware, generally they are a pain which can be solved with ini tweaks ... except when the game launcher insists on reverting them.
Another tip, after a game patch and / or updating your graphics drivers .. Regenerate you ini's :
In the game launcher, go to options, and hit the default button. The game will then re-detect your hardware and adjust for what it considers optimal settings for your hardware / drivers / game patch version setup.
Yes you will have to re-do a few ini tweaks you may have applied in the past, but also proceed with caution .. Old tips may no longer be optimal.
With each new game patch there have been some remarkable improvements, and if you read the release notes of the last couple of NVidia updates they have been improving Skyrim performance / bug fixing too. So it makes sense to work from the ground up again.
And one more tip: For NVidia driver updates, there is a custom option as part of the setup, at the bottom of that screen is a small check box which when ticked will clean out your old graphics driver profile settings so that you start afresh with those aswell.