I'd:
* use $250k to remove PPOR debt
* use $300k to increase shares portfolio
* use $300k to reduce IP debt
* give $100k to our favourite worthy causes (incl. church and charities)
* use $50k for a nice overseas holiday and do a few jobs around the house.
This would push us further along the path, while giving ourselves a nice reward and benefit along the way.
I'd pay off some current debt, which would give us some more cash for serviceability and $h!t loads of equity, then get stuck into building 6 new IPs per year for the next few years.