Yarn Transformation - part 1

A few months ago, a friend was cleaning out her closet, and gave me several items to take apart and remake. Included was a sweater she had knit from wool yarn. I asked her if she wanted to unravel it and reuse the yarn herself, but she wasn't interested. Because I've had a hard time finding thrift store sweaters that can be unraveled, especially wool ones, I gratefully took it. Instructions for unraveling a sweater (and how to identify a hand-knit one that can be unraveled) can be found at Neauveau Fiber Arts. From this: To this: What comes next?? I think I want to knit something, although I may crochet. But so far, I haven't decided. A hat? A scarf? The yarn is really soft and warm, so I want to make something special. If you have any suggestions, please leave me a comment!