The physical characteristics of Cepheus E ( Cep E ) ‘ embedded ’ outflow are analyzed using ISOCAM images in the v=0-0 S ( 5 ) 6.91 \mu m and S ( 3 ) 9.66 \mu m molecular hydrogen lines . We find that the morphology of the Cep E outflow in the ground vibrational H _ { 2 } lines is similar to that of the near infrared v=1-0 2.12 \mu m line . At these mid-IR wavelengths , we do not detect the second H _ { 2 } outflow which is almost perpendicular to Cep E 2.121 \mu m flow or traces of H _ { 2 } emission along the second ^ { 12 } CO J = 2 - 1 outflow at \sim 52 ^ { \circ } angle , down to a surface brightness of 12 - 46 \mu Jy/arcsec ^ { 2 } . We do detect at 6.91 \mu m the likely source of the main H _ { 2 } and CO outflows , IRAS 23011+6126 , and show that the source is easily seen in all IRAS bands using HiRes images . The source is not detected at 9.66 \mu m , but we think this agrees with the interstellar extinction curve which has a minimum at \sim 7 \mu m , but rises a \sim 9.7 \mu m due to the strong absorption silicate feature , enhanced in this case by a cocoon surrounding the Class 0 object . This idea is supported by our models of the spectral energy distribution ( SED ) of the central object . The models assume that the main source of opacity is due to bare silicates and our best fit for the SED yields a total mass of envelope of 17 M _ { \odot } and a dust temperature of 18 K .