Accurate channel state information (CSI) at the transmitter is an essential prerequisite for transmit beamforming in massive multiple input multiple output (MIMO) systems. However, due to a large number of antennas in massive MIMO systems, the pilot training and feedback overhead become a bottleneck. To resolve this issue, the research work presents a novel framework for frequency division duplex (FDD) based multiuser massive MIMO system. A 2-step quantization technique is employed at the user equipment (UE) and the CSI is recovered at the base station (BS) by applying the proposed compressed sensing (CS) based algorithms. The received compressed pilots are quantized by preserving 1 bit per dimension direction information as well as the partial amplitude information. Subsequently, this information is fed back to the BS, which employs the proposed quantized partially joint orthogonal matching pursuit (Q-PJOMP) or quantized partially joint iterative hard thresholding (Q-PJIHT) CS algorithms to recover the CSI from a limited and quantized feedback. Indeed, an appropriate dictionary and the hidden joint channel sparsity structure among users is exploited by the CS methods, resulting in the reduction of the feedback information required for channel estimation. Simulations are performed using singular value decomposition (SVD) and minimum mean square error (MMSE) beamforming utilizing the estimated channel. The results confirm that the proposed 2-step quantization approaches the system with channel knowledge without quantization, thus overcoming the training and feedback overhead problem. Moreover, the proposed 2-step quantization outperforms 1-bit quantization, at the cost of slightly higher complexity. INDEX TERMS Compressed sensing, joint channel estimation, quantization, channel state information (CSI), multiple input multiple output (MIMO), sparse channel estimation, dictionary.