how do I set up me.com email in Outlook?

You need to enable 2 Factor Authentication on your Apple ID and create an app specific password to use. If your account won’t allow 2 Factor Authentication, try 2 step verification.

Apple ID -Two-factor authentication 

Two Factor Authentification availability

Apple ID - Using app-specific passwords

Apple ID - Two Step Verification App Specific Passwords

Apple ID - Two Step Verifications FAQ

Note specifically you need to setup the iCloud email account that @me.com address alias is associated with. Since there is no MobileMe service (it was shutdown in 2012), your @me.com address is nothing more than an alias to the iCloud account you setup before MobileMe went dark in 2012.

Mail server settings for iCloud email clients - Apple Support

You are welcome.