I used Bernat Cashmere blend which is unfortunately discontinued. But I think any worsted weight will do.
I made this too!! Any worsted weight will do. I made one in "recycled" cotton (I bought a $1.99 sweater at the thrift shop and ripped it out for yarn), and also one out of an acrylic yarn (I hate the stuff, but it was for my niece who is allergic to wool) My niece loved her "capes". I made the neck opening smaller and the repeated the lace pattern twice to make a longer, kid-sized cape. This is really a good pattern and easier to follow than it looks.
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