Hi princez,
I think, the LM35 is not the best body-temp meter, because it has a typical +/- 1Cels. accuracy, but it can be up to +/-2 Celsius :-(...
You can have better thermistors.
Otherwise; of course you can connect it direct to PIC, but it is to realize, that its 10mV/Celsius is not very high voltage, specially for body temp measuring is usual to wish 0.1 degree resolutions tho have, its here 1 mV-relative small for exacter readings_or you have to amplify it.
K.
ps:
I applyd LM35s _for "on PCB temp". to measure, for that they are very good_for body temp more poor...