When held in the hand this is actually a fairly cool looking item. It has that "semi-transparent blue ice cream cone" look. I got one recently that I plan to use for ceremonial purposes. It can be held in either hand.
The Slime Elemental is found in Runneye on the second floor walking by the bridge over the slime pool. It looks like a Gelatinous Cube, and is lvl 25-27. Fairly common drop.