So I did.
Here's the process I used to Kool-Aid dye two skeins of Debbie Stoller's Full 'O Sheep 100% Natural Wool (colorway Little Lamb).
Third: Soak your yarn in a very luke warm water bath. If the water is too hot it could start to felt and you don't want that.
Fourth: While you're yarn is soaking, you want all the yarn to get good and saturated, fill a pot with water and let that water start to warm on the stove.
Fifth: Just before the water starts to boil, remove from heat and drop in your Kool-Aid packs and give it a stir.
Seventh: Let your yarn sit in the water. The yarn will start to absorb the dye from the water, and you will see you're yarn become colorful.