Illusion items are a good reward in general, but if the idea is to do something special for Ninik then anything involving cookies, cupcakes, etc would be the way to go. Gnoming it up is her shtick, so I doubt an illusion item would get much use.
An item that would let her turn other players into gnomes would be pretty awesome though. Divinity raids would certainly be a site to see.
Edit: And no player on the server would be safe from randomly being Ninik'd.
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