This might help you
MemoryStream ms = new MemoryStream();
XmlWriterSettings xws = new XmlWriterSettings();
xws.OmitXmlDeclaration = true;
xws.Indent = true;
XDocument xDoc = XDocument.Parse(utf8Xml);
xDoc.Declaration.Encoding = "utf-16";
using (XmlWriter xw = XmlWriter.Create(ms, xws))
{
xDoc.WriteTo(xw);
}
Encoding ut8 = Encoding.UTF8;
Encoding ut116 = Encoding.Unicode;
byte[] utf16XmlArray = Encoding.Convert(ut8, ut116, ms.ToArray());
var utf16Xml = Encoding.Unicode.GetString(utf16XmlArray);