I'm pulling from my stash from this one, namely some glorious yarn my Love got me for Christmas -- Blue Sky Alpaca Silk (50% alpaca 50% silk) in peacock. For the sheep, the fur is knit from Naturally Caron Spa and the body is knit from what I think is Plymouth Encore Worsted that I used to make a hat for Eddie once.
The Alpaca Silk is glorious. It's a really deep and interesting teal and the size of the yarn is well suited for this project. I don't love Naturally Caron Spa but I do have between two and three balls of it somehow, so I am going to use it! It's pretty splitty, but it's a good fit for this project because it's about as fine as Alpaca Silk. Encore was not a good fit, it's disproportionately bulky and I lost a little stitch definition between the sheepie's legs. That being said, I love the overall color combination and the sheep's fur has this raised look that is adorable.