My favorite yarn is, without a doubt, Debbie Bliss' Cashmerino. Anyweight. It's all faboo. Soft, fluffy, holds up well to machine washing (!) though it doesn't appreciate the dryer too much. The stuff is divine.
My favorite blog these days is, hands down, yarnstorm. The color! The play! This woman has an incredible eye and an incredible voice. Every post is a visual delight.