KNY,
I don't think you can selectfully "shrink" wool -- if you shrink it a significant amount, it will become "felt."
And that's just not the same fabric at all!
Maybe someone else has better advice. If not, you could either keep the sweater as a reminder of good days gone by, or pass it on to a friend that would appreciate such a gift.
annie
Time is a companion that goes with us on a journey. It reminds us to cherish each moment, because it will never come again. What we leave behind is not as important as how we have lived." Captain Jean Luc Picard