This is positively the last post on this, until I start knitting it and go "squee!" Finished, dried, and wound:
I love how this turned out! In summary: soak, zap, rinse, wash, rinse, dry, wind. Easy peasy.
I did a little research, and yarn dyed with Kool-Aid is colour-fast. When I washed and rinsed it, the water was clear, and the water in the dye-pots was clear when I was done microwaving. The yarn is hand wash, 100% merino wool, machine wash yarn wouldn't have taken the dye so well because of the nylon but it would make an interesting experiment. I'd guess the dye would fade if it was machine washed.