Koigu Painter's Palette Premium Merino (or KPPM for short). Which is dyed—by hand, mind you—in small batches for a gorgeous watercolor-y look when knit up.
But honestly, I even love it still in the skein. And what's more, it's finely spun merino, so it's as much a pleasure to knit as it is to look at.
And today I have the perfect pattern to go with this luscious yarn (ok, true, there are probably dozens of perfect patterns for a yarn like this, but here's one at any rate):
|Peasant Raglan by Heirloom Stitches|