Step 1: Choose a Gaussian surface.
Consider a cylindrical Gaussian surface of radius
\[
R
\]
and length
\[
L,
\]
where the surface lies between the charged cylinder and the conducting cylinder.
The enclosed charge is
\[
q=\lambda L.
\]
Step 2: Apply Gauss' law.
According to Gauss' law,
\[
\oint\vec E\cdot d\vec A
=
\frac{q}{\varepsilon_0}.
\]
Since the electric field is radial and constant over the curved surface,
\[
E(2\pi RL)
=
\frac{\lambda L}{\varepsilon_0}.
\]
Hence,
\[
E
=
\frac{\lambda}{2\pi\varepsilon_0R}.
\]
Step 3: Write the answer.
Therefore,
\[
\boxed{
E
=
\frac{\lambda}{2\pi\varepsilon_0R}.
}
\]
Thus,
\[
\boxed{(C)}
\]
is the correct answer.