At last years retreat we were all given some dyed yarn to have a play with. I had a small bag of multi-coloured bits. I was unsure what to do with it but just combed it a bit just to fluff it and then spun it as it came trying to get all the different colour's through the bobbin.
Once I had finished I decided not to ply it on itself because I didn't have very much and I would have lost some of the colour change. I ply ed it with some sewing cotton. I have no idea what to knit out of it but a scarf or small shawl will be likely because it will show off the lovely colour's.