What would I do? I would put away most of the money so it can't be touched. I'd rather not be accustomed to having the money even though it would be nice to remove uncertainty. Basically, put it in some kind of trust that pays me interest or a stipend.
I would pay off my loans, buy a house and car, and perhaps set aside money to travel and things like that. But I want to keep working as if I had never won. Maybe I'd make donations to my alma mater on the condition that they never call me and ask ever again (I would also require that they not
name anything after me because of my donation, although I could see myself setting up a scholarship fund that gets my name).
Regarding family and friends, I'll pay off my the debt of parents and the student loans of my brothers. But I don't want to be seen as a giver of charity or of largess, so that might be it.