Using koolaid and some help from knitty. It was loads of fun, just squishing it around and it looked fabulous drying on the washing line in the sun. Definately will be trying it again. Had to take it into the house to finish off drying and you could smell the koolaid every time you walked past, absolutely fab. I might even let the little monsters have a go next time, it would be nice to have some yarn they have dyed tho I would have to think up something really special to knit with it.
I love the colours but cant imagine what I am going to do with the yarn now, I rarely wear anything colourful or pastel so am thinking of adding it to the shop or using it as swaps or gifts.