Ooooh, Cormo. Lovely stuff. 8 oz -- how about a scrunchy warm long scarf, the kind with pockets on the ends for your hands. Mmmm.
I'd spin it fairly low-twist but still enough to ply it, 2 or 3 ply, into a worsted weight. So that the plyed yarn was fairly bouncy-open. Cormo's usually pretty high crimp and so will give you a nice bouncy yarn to knit with.
It should also felt really well, if you want to go that route. And it will take dye nicely, if you want to add color to it.
Cormo's soft enough to be next-to-skin for a large number of people, but if you are sensitive, test it out first if you want to make something that may be next to the skin, like a scarf. My son, for example, finds almost everything wool bothersome so Cormo would be out for him. Me, I can take even medium wools in a hat, scarf, or gloves -- Romney or whatever.