Personally I'd have him play less of a fixed role on WWE TV while the writers come up with something for him.
Next week on RAW, have Vince McMahon announce that since Hulk Hogan is competing on RAW against one of the very best there is, Shawn Michaels should be doing that as well. Vince leaves Hogan with the power to "Pick HBK's Poison". Hogan seems to have one guy already picked out in his head.
HBK is out in the semi-main event, and his opponent is none other than...Kane. Kane comes in and DEMOLISHES Michaels (make Shawn look credible, but have Kane just dominate him). Shelton Benjamin demands an IC Title shot, Eric Bischoff gives him the task of beating Kane, Hardy wants to run around like a rebel; Kane, etc. . Just have Kane come in every few weeks and KILL someone. Have him go down to OVW regularly and squash somewhere there. Hell, put the OVW Heavyweight Title on him if you want.
Have him break the Masterlock (it should be used for a new guy, but Kane would get some heat for it), and let him squash Chris Masters, sending him back to OVW.
Just have Kane based around what Kane does. Have him go in, kill someone, leave. No storylines, because the WWE usually stuffs them up. This is just until the WWE comes up with something sure-fire Kane.
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