If you can get your hands on this
book it has some pillow patterns but also has a cable stitch dictionary in the back if you wanted to pick a pattern and design your own pillow! This
book also has some great cabled patterns in it. Hopefully these are availalbe at a local library!
Since pillows are pretty straight forward you could also find a cabled scarf pattern you like and just add stockinette on either side or double the width of the scarf.
As for the yarn - use anything you are comfortable with! Acryclic would be nice for washing but wool/alpaca/cashmere would be super special for snuggling with!