I would make scarves with it, or a simple, rectangular shawl, maybe using bigger needles as suggested above. If it is too flimsy, pairing it with another yarn would be just great.
I am currently addicted to knitting the Yarn Harlot's scarf. I also did a scarf knitted longways, using a long circular needle. There are 4 dift yarns in this one. Not lacey, but will give you an idea. I like short scarves, but this could be made longer.
Let us know what you decide to do!