It turns out my friend is allergic to yarn that comes from sheep. After some testing it has been decided that cashmere yarn on its own or mixed with silk will be the answer and she would like variegated yarn using dark blue to powder blue. I have found some cashmere on Etsy in KeystoneArtAndCraftshop, which is a start.
As for what I am knitting, I have got my Aquamarine Scarf finished with some changes as I wanted more depth at the back. I now am trying to complete my Marbon Shawl but the edging seems to go on forever.