Here are the steps to jailbreak your iPad 2 with the absinthe jailbreak:
Step 1: Download absinthe jailbreak, Direct download for Absinthe jailbreak.
Step 2: Run the absinthe jailbreak on OS X
Step 3: Connect your iPad 2 (or iPhone 4S) to your computer running absinthe jailbreak tool.
Step 4: Be patient while your iPad 2 is being jailbroken
Step 5: Unlock your iPad 2 and look for the Absinthe jailbreak icon, and select that icon (try re-selecting if your get a database error).
Step 6: Your iPad 2 will reboot and the Absinthe icon will change into the Cydia icon
Step 7: Open Cydia and allow it to be configured and reboot again.
Step 8: Enjoy your jailbroken iPad 2 running iOS 5.0.1
Now that you have Cydia on your iPad, you can begin to install the best free Cydia tweaks and a few of the best paid cydia tweaks for your iPad! Some are not iOS 5 compatible yet, but with the iPad 2 and iPhone 4S jailbreak being made available the jailbreak developers will definitely get to work on the updates.